• 3 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 5 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 1 min Rethinking election outcomes for oil.
  • 6 hours Clean Energy Is Canceling Gas Plants
  • 2 mins The Leslie Stahl/60 Minutes Interview with President Trump
  • 20 mins China leaders meet to discuss proposed 5 year economic plan.
  • 42 mins The City of Sturgis Update on the Motorcycle Rally held there, and the MSM's reporting hence
  • 1 day GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 17 mins America's Frontline Doctors - Safely Start Living Again!
  • 4 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 22 hours Video Evidence that the CCP controls Joe Biden
  • 1 day OP article : "Trump blasts Biden Fracking Plan . . . "
  • 44 mins Saudi Oil Minister Abdulaziz said getting rid of oil "Far Fetched and Unrealistic". . True. . . but
  • 8 hours Irina Slav has a good article - Regarding Investors & Oil
  • 32 mins Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 1 day Biden denies fracking ban
  • 2 days Is the coal industry on the way out?
Editorial Dept

Editorial Dept

More Info

Premium Content

How To Trade An Illogical Oil Market

One of the things that appeals to me about energy investing is that very often, the energy sector’s sensitivity to changes in demand makes it a kind of “canary in the coal mine” for the broader stock market. That is only useful, however, when energy, or more specifically crude, is leading the way. What we have seen over the last few months, and increasingly over the last couple of weeks, is the opposite…stocks are leading crude prices.

I don’t mean that the two are moving in absolute lockstep every day, but rather that the overall sentiment that is driving WTI futures seems to be one borrowed from stock traders, namely that even though the U.S. economy is in tatters, everything will be fine really soon. That has shown itself of late, not in the form of a big pop in crude, but in CL trading in a rapidly narrowing range, even in the face of very bearish news.

Within the U.S., it is clear that the rapid reopening by some states of their economies was a huge mistake. Coronavirus cases in places like Florida, Arizona and many other Southern and Western states that went that route are exploding, pushing the overall rate of new cases in the U.S. to new highs seemingly every day. That leaves the Governors with an unenviable choice of either admitting they were wrong or risking the lives of thousands of their constituents to avoid doing so.

I can be as cynical as the next person when it comes to politicians, but not even I think…

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News