| Author | Message | ||
     Kubang Celebrity Bewarse Username: Kubang Post Number: 30389 Registered: 09-2011 Posted From: 161.141.1.1 Rating: N/A |
This week oil prices climbed despite a very large reported crude inventory build, a reflection of how biased to the downside sentiment and positioning already is. On Wednesday the EIA reported that US crude inventories gained 10.37 MM barrels to ~518 MM, the largest build since April 2015. Cushing saw a 1.2 MM build and has gained 16 of the last 17 weeks. Gasoline and distillates stocks increased by 1.47 MM and 2.9 MM respectively. Oil exchange-traded funds (ETFs), currently net long 272 MM barrels of oil (equal to ~56% of the front month open-interest in futures), supported prices by creating an unnatural floor on the market. Short positions in oil ETFs surged 300% to extreme levels in January until price gains unleashed a dramatic short squeeze. Oil ETF short positions are closed by purchasing crude oil futures, which drove the net purchase of 125 MM barrels across ETFs since January. Over the past week ~13 MM barrels of crude was accumulated by Oil ETFs. the above is our internal guys view, they think the recent run is a result of short squeeze. once that is done, crude is going to test lows again. probably my march puts are write off but am ready for April and beyond. Ignorance is bliss |