Contango

Goldman Warns Of Oil Price Shock As Border Tax Could Lead To Surge In US Oil Production

The price gain from a shift to destination-based border adjusted corporate tax would prompt US drillers to sharply increase activity" as a result of lower US corporate tax rates, which would aggressively incentivize shale drilling, resulting in a global oil price shock, sending domestic prices spiking, as global prices slide, according to a new Goldman report.

U.S. Prepares To Sell Off Its Oil Reserves

The U.S. is beginning to wind down one of the core energy security policies of the past half century as the boom in domestic drilling eases concerns about supply.

Futures Unchanged In Thin Pre-Holiday Tape; Italian Bank Bailout Lifts European Shares

European stocks halted two days of declines, with the Stoxx 600 fractionally in the green and Italy’s bonds climbing after Monte Paschi requested a bailout and Italy pledged to provide support for its other ailing lenders. S&P futures were little changed among extremely thin volumes while Chinese stocks dropped amid concerns on higher borrowing costs.

Oil Fades From OPEC Exuberance On Fund Flows, Storage, & Contango Concerns

The overnight exuberance in crude oil futures markets has faded notably as the day has worn on. While news of supply cuts are unquestionably bullish (should one choose to believe it or not, remember the Saudis admission "we tend to cheat"), but the last few days have also seen a plethora of bearish-biased news that for now is being ignored.

Is OPEC Playing The Oil Markets Again?

OPEC has once again succeeded in jaw-boning the oil market, and Goldman Sachs hiked its oil price forecast this week by a substantial amount, but the optimism has not trickled over into the oil futures market, at least not yet as the contango'd curve still does not look very good.

Oil Slides After Bigger Than Expected Gasoline Build

After a day of frenetic OPEC headlines being all that matters, oil traders may briefly focus on fundamentals as API reports an unexpectedly large build in gasoline inventories ( +2.68mm vs 900k exp). Overall crude, cushing, and distillates saw inventory draws which left wti slightly lower post-data.