Why arent we rallying? Dollar is falling and OPEC and Russia are now talking.
This kind of thing produced great returns in the spring.
Heres the difference. In the Spring the market thought OPEC was going to freeze, gasoline demand was much higher, and shale production was going much lower than it has. However there is one more key difference. In the spring gasoline crack spread was over $20. Now it is $10. Refiners dont have incentive to keep using crude oil. They have taken the brunt of OPECs manipulation. To boot, OPEC and Russia are pumping more than they ever have. THE OIL MARKET IS SCREWED. THERE IS NO WHERE FOR PRICE TO GO BUT DOWN.
This kind of thing produced great returns in the spring.
Heres the difference. In the Spring the market thought OPEC was going to freeze, gasoline demand was much higher, and shale production was going much lower than it has. However there is one more key difference. In the spring gasoline crack spread was over $20. Now it is $10. Refiners dont have incentive to keep using crude oil. They have taken the brunt of OPECs manipulation. To boot, OPEC and Russia are pumping more than they ever have. THE OIL MARKET IS SCREWED. THERE IS NO WHERE FOR PRICE TO GO BUT DOWN.