Oil stocks down quite a bit more than products up ... Looks like the oil bull is taking a breather. I am honestly expecting builds at these price levels. So much for meaningful demand destruction in the US! I guess that takes quite a bit longer to play out as people change their habits by changing autos. Any knowledgeable opinions on interpretation of these numbers?
Very bearish sign when crude stocks drop 5.1 million barrels (drawdown) and crude oil is only up a meager 80 cents. Global economies are slowing, and some experts believe this draw down is related to interruption in Alaskan supply, temporarily.
Oil will be down today again. Even The Iran's missile news could not hold it up. There is a fundamental problem with oil being at $135 for now. It will drop below $100 this year and will surprise many people.
Why would any rational person buy oil for the long term at these levels. The effect on the global economy is massive if it goes to $200 watch equities collapse and inflation roar and then watch the demand destruction. The only people buying oil at these levels imho are people who plan to use it. The shorts have been crushed, long term holders need their heads read. Hence the price starts coming down, in spite of Iran and the draw down. Although it irkes me that it is above $130 and the talking heads call it a massive sell off.
Um the oil report has never had an impact on stocks which is why the yahoo finance econ calendar gives it such a low grade.