pstarr wrote:I'd call that spot on.
Hardly. The yearly average is off to such an extent that prices would have had to go way into the negative for Short to have won his bet. ETP is dead.

pstarr wrote:I'd call that spot on.
onlooker wrote:My esteemed Mr. Cog are you sweating now? It is down to $42
GoghGoner wrote:The midland spot price is below $40. Those Texas shale drillers are going to be hurting really bad on their financials if this continues.
https://pbs.twimg.com/media/DutzoXHW0AEv63o.jpg:large
dolanbaker wrote:It's going south again, looks like the correction isn't complete yet.
Will be interesting to see where it levels out, will it remain above the lows of the last GFC for example.
Will there be another round of QE to save the day.
Cog wrote:If the economy is in serious trouble you would have seen it in unemployment numbers by now. Unemployment is stable. This correction is fear based on what might happen, not what has happened. We do not know about China and how that trade negotiation will work out or what this new Democrat House has in mind. We will have some 4th quarter GDP numbers in a month, so we will see if there is anything untoward happening with the real economy.
GoghGoner wrote:Oil prices down $10 the past two weeks. Financial markets are down the past month. I haven't been following supply news too much but from what I know this may be caused by demand issues. We will see what happens but if the demand weakness is temporary, we will probably see a recovery by the fall. With rig counts in NA down significantly yoy, this sudden drop in price will cause further disparities in counts.
I like the cheaper gasoline prices but I wanted to test my theory that $100 oil wouldn't be matched with an increase in US rig counts. Oh well, enjoy it will it lasts -- the time will come to test my theory soon enough.
There isn't some big, overall "supply issue" or "demand weakness" that seems to be causing this. It's concerns about the future, at least for now.
This move is based partly on the fundamentals and coincides with some counter-seasonal builds in inventories. This is the classic weak demand price crash that we have witnessed many times in the past
U.S. crude, gasoline and distillate stocks rose last week, the Energy Information Administration said on Wednesday. Crude inventories USOILC=ECI rose 6.8 million barrels in the week to May 31, compared with analyst expectations for a decrease of 849,000 barrels. across-the-board inventory builds makes for a very bearish report," said John Kilduff, a partner at Again Capital. A surge in imports and a increase in domestic production boosted inventories, he said. "The inventory gains came despite strong demand for crude oil from refiners and gasoline from drivers," he said.
The rise in refinery runs has paled in comparison to the jump in imports, particularly waterborne imports to the Gulf and West Coasts, said Matt Smith, director of commodity research at ClipperData
US crude oil production as estimated by the Energy Information Administration showed that production for the week ending May 24 rose to 12.3 million bpd, resuming its all-time high that was originally hit the week of April 26.
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