Contango

How OPEC Lost The War Against Shale, In One Chart

Goldman presents a chart which shows just as graphically how exactly OPEC lost the war against US shale: in one word: the cost curve has massively flattened and extended as a result of "shale productivity" driving oil breakeven in the US from $80 to $50-$55, in the process sweeping Saudi Arabia away from the post of global oil price setter

"We Failed Miserably": Gartman Stopped Out Of Latest Oil Long

"We failed… miserably… in paying attention to the shifting nature of the term structure for more than a week ago we noted a change that was taking place and which was incipiently bearish of crude oil, but we failed to pay proper and full heed to the signals that this shift was sending to us. This is unforgiveable. It shall not happen again." - Dennis Gartman

Hedge Funds Have Never Been This Long Crude Oil

Despite record gluts in crude and gasoline amid resurgent US crude production, hedge funds boosted their net long position in WTI last week to a new record high.  For the first time ever, hedge funds hold more than a billion barrels of bets that crude oil prices will rally.

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.