A lot of this has to do with Monica. |
All the geopolitical tension is the primary factor supporting this stuff. |
Although crude oil inventories remain high relative to recent history, fears of future disruptions are encouraging further inventory increases, which tend to support prices [and] create a positive feedback loop. |
Anything that throws China off its growth path would affect commodities, especially crude oil. Look what severe acute respiratory syndrome [Sars] did to China for just a couple of quarters. |
As heating-oil prices rise, that does give some support to natural gas. |
As long as you have trending markets, whether they are up or down, commodities are a good place to be. |
At some point, too much capacity will be built, and (gasoline) prices will go down again. |
At this time of year it is all about the weather. This is a respite, but it won't last. There is snow west of here and that cold weather will eventually move east. |
Brazil, to some extent, has seen the abyss. They know devaluation is not a good idea, |
Clearly, there does not appear to be a problem getting crude, ... This report was neutral except distillate, which was bearish, as refiners expected a draw. |
Clearly, there does not appear to be a problem getting crude. This report was neutral except distillate, which was bearish, as refiners expected a draw. |
Crude oil is the least of our worries. There is ample supply in storage and the government will tap the SPR, because this is what it is there for. They released supply last year when Hurricane Ivan struck the region. |
Everything else in the report was neutral or bullish, ... Demand is still high. |
Everything else in the report was neutral or bullish. Demand is still high. |
Gasoline consumption fell. That suggests one of two things. First is the economy in worse shape than we thought or the high oil prices are starting to be affected by demand destruction. |