>What’s even more striking is that, for the first time ever, the paper market for Brent crude is “net short.” This means there are now more investors betting that oil prices will fall than those expecting them to rise. This is significant because it’s rare to see such pessimism in the market, especially when physical global oil inventories are falling at a rate of about a million barrels per day.
Runster91 on
Time to go long baby!
GirlwithPower on
Cheap oil from Russia, Iran etc efficiently delivered everywhere and not tracked in the mainstream leading to lower prices?
It’s election time it unlikely the US will start another war, changes in the oil market likely immediately after elections.
35242 on
As good as cheap oil sounds, it isn’t. With a crude price drop on the heels of a rate drop we will see a net slow down in oil production in the US, a net price drop, and a ripple effect of a slowing economy.
Where is the glut coming from? Russian oil? Or Middle East?
BarelyThere78 on
This tells me that the oil investors are pricing in a recession. Recessions are bad for oil producers. …and great for those that can still afford to fill up their tank.
Calls on bicycles.
kad202 on
BRICS buy cheap Russia crude oil and sell it elsewhere.
Flurk21 on
Wasn’t oil negative prices near 2020?
lmaccaro on
China slowing. 20% of new cars globally are EV. Crazy amount of solar, wind, and heat pumps being installed.
Not enough population growth to overcome that.
surmoiFire on
put on OPEC
AdPrestigious8198 on
Oil prices dropping is very predictable
What I don’t understand is why has buffet gone and invested in oil mining?
AdPrestigious8198 on
Refil the SPR
If Biden admin did this last time OPEC wouldn’t have cut production
AdPrestigious8198 on
When the price of diesel starts to equal or drop below the price of Gas you can be sure a large recession is in effect.
The lowering of diesel prices below gas means they are having storage issues for this product and heavier crude oils would be the best option to short.
12 Comments
>What’s even more striking is that, for the first time ever, the paper market for Brent crude is “net short.” This means there are now more investors betting that oil prices will fall than those expecting them to rise. This is significant because it’s rare to see such pessimism in the market, especially when physical global oil inventories are falling at a rate of about a million barrels per day.
Time to go long baby!
Cheap oil from Russia, Iran etc efficiently delivered everywhere and not tracked in the mainstream leading to lower prices?
It’s election time it unlikely the US will start another war, changes in the oil market likely immediately after elections.
As good as cheap oil sounds, it isn’t. With a crude price drop on the heels of a rate drop we will see a net slow down in oil production in the US, a net price drop, and a ripple effect of a slowing economy.
Where is the glut coming from? Russian oil? Or Middle East?
This tells me that the oil investors are pricing in a recession. Recessions are bad for oil producers. …and great for those that can still afford to fill up their tank.
Calls on bicycles.
BRICS buy cheap Russia crude oil and sell it elsewhere.
Wasn’t oil negative prices near 2020?
China slowing. 20% of new cars globally are EV. Crazy amount of solar, wind, and heat pumps being installed.
Not enough population growth to overcome that.
put on OPEC
Oil prices dropping is very predictable
What I don’t understand is why has buffet gone and invested in oil mining?
Refil the SPR
If Biden admin did this last time OPEC wouldn’t have cut production
When the price of diesel starts to equal or drop below the price of Gas you can be sure a large recession is in effect.
The lowering of diesel prices below gas means they are having storage issues for this product and heavier crude oils would be the best option to short.