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Crude Slips Despite Resumption Of Oil Rig Count Declines
After a surprise surge last week, the US oil rig count resumed its decline this week (dropping 3 to 538). Gas rigs dropped 6 in the last week (as the Nattie glut continues). Crude oil prices fell very modestly on the rig count data (having run stops to FOMC day gaps).
Rig count continues to track lagged oil price almost perfectly...
Crude slipped very modestly...
Having run stops to last week's major inventory build...
Charts: Bloomberg
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Three frigging rigs drive the market? We are sooo doomed......
Highly levered specs drive the market. They have nothing else today but rig counts to watch.
Last week was no surprise: -17 NG rigs, +17 oil rigs.
I only concern myself with my shoulder holster rig.
I don't think the rig counts matter one bit. Oil is merely filling in for the USDJPY in driving the algos this past week. By topping its Aug 24 lows earlier, CL is driving stocks higher (SPX topped its 200-day moving average today) into a low-volume holiday -- when the fundamentals matter the least.
By driving oil higher, the Fed/ECB should be able to coerce the BoJ into more yen bashing to support the yen carry trade.
http://pebblewriter.com/the-yen-carry-trade-explained/
http://pebblewriter.com/hello-haruhiko-janet-here/