Just six weeks ago, bearish sentiment dominated the crude
market, with pundits such as Jim Cramer asking why investors would
want to invest in a commodity that was falling in price. From the
mid-60s trough in June, crude is now trading over $80/barrel,
roughly a 25% surge. The above chart, showing oil inventories
adjusted for the SPR releases, is a powerful visual regarding what
a dangerous game the administration is currently playing.
Bloombergreported on July 26th that gasoline prices are
ripping all over the world.
Also at the end of July, it was reported that U.S. commercial
crude stocks plummeted by 17 million barrels,
the greatest weekly drop since the early
1980s.Accordingly, a powerful short squeeze of both the hedge
fund community (which had significant bearish bets on oil) and Team
Biden appears to be underway. The Saudis and the Russians are
likely to increase the pain for the shorts in the weeks and months
ahead. (By the way, Mike Rothman, creator of the above chart and my
favorite oil market expert, nailed it once again back in June when
he was strongly urging his readers to go long oil and energy
stocks.)
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
from David Hay /Haymaker Just six
Posted by raymuy on 7th of Aug 2023 at 04:34 pm
from David Hay /Haymaker
Just six weeks ago, bearish sentiment dominated the crude market, with pundits such as Jim Cramer asking why investors would want to invest in a commodity that was falling in price. From the mid-60s trough in June, crude is now trading over $80/barrel, roughly a 25% surge. The above chart, showing oil inventories adjusted for the SPR releases, is a powerful visual regarding what a dangerous game the administration is currently playing. Bloombergreported on July 26th that gasoline prices are ripping all over the world.
Also at the end of July, it was reported that U.S. commercial crude stocks plummeted by 17 million barrels, the greatest weekly drop since the early 1980s.Accordingly, a powerful short squeeze of both the hedge fund community (which had significant bearish bets on oil) and Team Biden appears to be underway. The Saudis and the Russians are likely to increase the pain for the shorts in the weeks and months ahead. (By the way, Mike Rothman, creator of the above chart and my favorite oil market expert, nailed it once again back in June when he was strongly urging his readers to go long oil and energy stocks.)