• 51 mins The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 4 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 4 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 17 hours "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 5 days Demonising fossil fuels has caused major grid problem in Australia
  • 4 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 6 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 330 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 8 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Editorial Dept

Editorial Dept

More Info

Premium Content

Beyond Crude Oil: A Long Term Play In Natural Gas

Last week, I talked about the illogicality of recent moves in crude, and there has been more of the same this week, if anything even more pronounced. I guess I should be used to markets behaving illogically after nearly four decades of working in and around them. In fact, I am not even sure if a counterintuitive move such as we saw this week in crude can be called illogical when it happens so frequently. Still, there are times when a move, particularly following a news or data release, puzzles or even shocks me. This Wednesday was a case in point.

I am sure that if you subscribed to a newsletter from Oilprice.com you are aware that Wednesday is a big day for oil traders. At 10:30 every Wednesday morning, the EIA releases their oil inventory report, data on supply and demand for domestic oil. Usually, the market reaction to the report is predictable enough. If inventories increase more than expected or decrease less than expected it indicates higher supply and/or lower demand than the market has priced in and crude drops. The opposite is also true, prices rise should storage numbers decrease more or increase more than expected. There are sometimes extenuating circumstances such as changes in gasoline supply and demand, but with those in mind, subsequent moves usually tend to make sense.

This week there was no excuse and no logic. Crude just did something weird.

The EIA numbers on Wednesday were about as bad as they could be. Going in, the market was expecting…

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News