Posted on 09/22/2015 9:21:11 AM PDT by bananaman22
The worst could be over for oil prices, if the whims of a growing number of speculators are anything to go by.
Hedge funds are taking their most bullish position on crude oil prices in two months. New data from the Commodity Futures Trading Commission shows that net-long positions on crude oil increased by 14,821 contracts, reaching a two-month high of 147,678 positions.
These swings in investor sentiment can move the price of crude. In recent weeks, we had seen an inordinately pessimistic view of crude oil, with short positions hitting their highest levels in years. Short betting pushed WTI below $40 per barrel late last month, with volatility off the charts. But speculators pushed the envelope too far, and once it became clear that short selling had become unsustainably high, a rally in prices became inevitable as short sellers covered their positions. Crude shot up by 27 percent in three days, even though very little happened in terms of actual news from the physical crude market.
(Excerpt) Read more at oilprice.com ...
As long as our masters want to prop up the ME by buying their crap I do not care.
I’m getting to like $2.00 gasoline.
Others are saying that oil prices won’t drop below $20.
Interesting story here, sourced to industry insiders, rather than the hedge fund gamblers.
http://bizbeatblog.dallasnews.com/2015/09/kelcy-warren-warns-oil-industry-to-brace-itself.html/
Me likey $2.12 diesel.
I hope not. I want gas under a buck like it was in the 90’s.
I’m sure that the hedge fund crowd can figure out how to manipulate the commodity markets to drive the prices back up.
We’re on our way to a glut of oil, and $3.00 gas again! Hooray!
P/E Ratio trends for many oil stocks are still in an upward trend. So the current ratio’s are still high (historically for these stocks) given the current earnings forecasts. I see they’re down again today (some at multi-year lows)...I expect them to come down some more, unless earnings are revised upward. Given the global economic slowdown it might still be a while until these stocks recover. That said, if they get much lower I might start building a position on them.
Refining capacity hasn’t increased in ages, so I don’t expect gas prices to get much lower.
$1.76 here in Baton Rouge.
With the average tax about 55 cents per gallon and adding in refining and transportation, I’m not sure oil can get cheap enough to make the finished product a buck a gallon any more.
I would like $2.00 USD/US gallon, too!
In Calgary, the HO for most oil companies in Canada, the best price I’ve seen today is 101.9¢CDN/litre. With the exchange rate of $1.00CDN to 75¢USD and 3.85 litres/US gallon, that works out to $2.94USD/USgal in Calgary.
Of course the oil companies blame this on an idle refinery in the US Midwest, down for emergency repairs.
Calgary is one of my favorite towns.
Love the Stampede...
average tax about 55 cents per gallon
Damn shame. Especially since we have had Republicans who support the tax increase too.
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