Daily Oil Market Summary: May 10

Courtesy of www.fmxconnect.com

Comments

[Aknownymouse]

why the hell can't those people see the ascending channel in oil?  They are saying fundamentals are weak while listing 2 large reasons that would support oil prices... It seems to me that they took a large short on oil a while ago and they are stuck with it.  Oil is going over $100.  It is called Inflation!  When you print fiat currency - you get inflation.  It is really simple people.

[dot_bust]

And for those of you who enjoy succulent seafood, there's a new item on the menu courtesy of BP: Flounder in a nice Quaker State sauce. Now, don't say you never get anything good. :)

[Iam_Silverman]

If oil keeps going up, I'm getting a couple of barrels and heading down to the coast with my spoon and funnel!

[Apostate]

The oil market is just waiting for OPEC to make a big move.

Like... can the House of Saud remain in power if the US is forced by the collapse of Bretton Woods to recall its soldiers?

I don't think anyone really knows how much oil is in the ground. All the numbers are cooked.

Most oil companies - private and nationals - have been spending much more money on bribes and social welfare programs than on capital investment or R&D. No wonder the industry is in wretched stagnation. 

[Dapper Dan]

I have heard the spill is around 25,000 bpd not 5000 bpd,  that would explain all the dispersal soap being used above and below the ocean.

The new smaller box sunk  over the leak is more for getting the dispersal at the source than to contain, in my opinion.  We do not want the citizens to know just how horrific this leak really is.

Disclaimer: no position in dispersal.

[Sudden Debt]

I've heard that if you piss on the oil, it also goes away like thin air.

I bet this smaller box is actually a large toilet that is able to fit Tony Hayward and bring him down so he can do his stuff.

The pipe attached is a electrical cable so he can watch porn all day. And if he want to take a dump, the pipe also sucks it up and when it comes up, they'll say OIL!!!! and stock will go up again.

[jp]

U.S. Domestic supply and demand numbers do not warrant anything remotely near the current price.

From EIA..

U.S. liquid fuels consumption declined by 810,000 bbl/d (4.2 percent) to 18.7 million bbl/d in 2009, the fourth consecutive annual decline.

As in U.S.Consumption is and has been going DOWN. This part is True.

EIA projects that world oil consumption will grow by 1.5 million barrels per day (bbl/d) in 2010 and 1.6 million bbl/d in 2011, similar to the forecast of last month.  This growth is the result of an expected recovery in the global economy,

What Growth? Where?

Nothing but Pie in the Sky B.S.

[jp]

Global demand is seen reaching 85.38 million barrels a day, a rise of 1.12 percent -- or 950,000 barrels a day -- over the 2009 figures, OPEC said

http://finance.yahoo.com/news/Oil-falls-below-76-as-traders-apf-392368996.html?x=0

So does the EIA give their data to OPEC or OPEC give their data to EIA.

[fmxconnect]

I can tell you with 100 percent accuracy the following:
Peter beutel has no psition in any facet of the oil markets. He is an advisor to heating oil distributors and hedge funds. He remains objective. His bias as a 20 year analyst is fundamental, and he has no love for GS as an enabler of speculation and resulting decoupling from fundamentals. In fact we often disagree in our own analysis on his assessment of where NG should be relative to Crude. As his content partners, FMX has zero position in the oil markets.
That said we are bullish as a dollar proxy. Deflation first, then inflation or the other way around, your call.
He writes a 10 page report every day, this is the lite version. It gets hard to be creative all the time as well. How many times can he say," Bank buying oil with shorted dollars and hedging petro risk with short NG"