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Crude Carnage Continues - WTI Hits 1-Month Low
WTI is having its worst day in over 2 months as the front-mointh tumbles back below $57.50 to one-month lows... Perhaps fundamentals do matter after all - or is this pre-OPEC dump to force non-Saudi cartel members to revolt?
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No. It is Gartman long of things
I read Gartman went Short Treasuries with proceeds to go Long oil.
WINNING!
Not enough.
MOAR!
wake me up when it is below 46
Shit happens...always...
This has become another buy the dip trade. Its that simple. Having its worst day in over 2 months, followed by its best day in over 2 months. Rinse and repeat. Easy money.
If there is one thing that i wish fellow ZH'rs where more pissed about is the oil to gas proce ratio. Am I missing something in my general calculations thaat when gas was $4 and oil was around $120 shouldnd gas be down at or under $2 a gallon with oil under $60 right now? WTF?
It won't be a 1:1 ratio because fuel taxes are based on volume, not price. A few states are getting screwed, but for the most part, prices are in line
that wat it seems to be to me. About $1 a gallon tax/hell of a profit margin for producers
Massive exports.
If you start building reusable rockets believe it or not you could even get an increase in domestic demand.
Then of course you have California...
So i am paying the same tax on a gallon of gas no matter what the gallon costs, correct?
But should not the non tax part be much lower?
this mean that inventoris are build up so no buying
For inventories to build, someone has to buy it.
OPEC, Saudis or not, cannot cut production. They don't control the oil markets anymore. Let's say Nigeria and Venezuela cut production by 500kbpd and prices rise to $70. Guess what the non-OPEC producers will be doing next? Checkmate. Prices are pounded back down to $60 within a few months and the OPEC members lose even more money and market share. The Saudis and Kuwaitis know this. That is why they're not cutting production. There is no shortage of oil like there was in the 1970's. When was the last time you went to a gas station and they were out of fuel?
Crude carnage just beginning: http://market-guru.co.uk/euro-and-oil-make-their-move/
Saudis start fracking
http://www.cnbc.com/id/102691084
They even gonna drown us in oil.
Would be funny as hell if they damaged their oilfields doing that.
Carnage me arse. I'll believe it when I see $2gal gas. Otherwise, it's all a kabuki dance.