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WTI Crude Tumbles To $45 Handle - Erases Post-FOMC Euphoria
Having pushed up towards $49 in its exuberant "a hawkish fed must mean everything in the world is awesome" way, yesterday's reality check on inventories (rising), production (rising), and The Fed (we are going to hike no matter what) which means the dollar too is surging and is pushing down on commodity prices, has dumped WTI Crude back below $46 and erased all of the gains post-FOMC.
WTI gives it all back:
Shifting WTI red post-FOMC, joining gold and bonds:
How long before stocks catch on?
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Just like the Soviet Union, the "official" price of many things will be great. Taking delivery at that price will be something else altogether.
Gartman was on "Fast Money" Monday afternoon and he switched back to bullish on crude. Of course, that was the top.
Gartman is in idiot, but yeah, it's nice when they ring a bell like that. Does not change the truth of my statement any.
"How long before stocks catch on?"
Lol..., good one Tyler. Bonus season is just around the corner.
It's down 39 basis points. Quite the tumble.
Correction. It's up 7 basis points. We can all now cease our panic over the "tumble."
Produtcion rising? You know it's not despite some occasional odd EIA model.
One of the O&G companies wanted to site up to four horizontal wells from a new pad on some of our land. They suspended talks with us when oil went to $45.
5 years ago, an E&P paid us $4,000/acre +15% royalties. Their lease expired last month (with no drilling done) ao they came back to renew the lease. They are now offering $10/acre (that is not a misprint) and 18% royalities.
I excused them from my home.
You don't suppose it has anything to do w/ the fact that oil inventory "build season" has just started.
And w/ another 22-24wks w/ high probability build to come and at an avg of 2.8mill barrel build per week x 22 wks,
you get an addtl build of 62mill barrels added to the current 483mill barrel level, which equates to
approx 545mill barrels by the end of March 2016. Compare w/ the 492mill barrel peak in April 2015
prior to the "drawdown season".
$20 Oil.
$20 Oil.
You could sell a barrel full of dog-shit for more than $45..In fact,it's such a good idea,I think I'll list it on Ebay,today..