• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 8 minutes What Can Bring Oil Down to $20?
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 2 hours Alberta govt to construct another WCS processing refinery
  • 23 mins Let's Just Block the Sun, Shall We?
  • 40 mins U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 3 hours Venezuela continues to sink in misery
  • 18 hours OPEC Cuts Deep to Save Cartel
  • 3 hours Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 22 hours $867 billion farm bill passed
  • 1 day Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 2 days Sleeping Hydrocarbon Giant
  • 1 day WTO So Set Up Panels To Rule On U.S. Tariff Disputes
  • 23 hours IEA Sees Global Oil Supply Tightening More Quickly In 2019
  • 21 hours Regular Gas dropped to $2.21 per gallon today
  • 20 hours Global Economy-Bad Days Are coming
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Are you Listening to the Pundits or the Markets?

Happy days are here again:  The outpouring of joy at seeing gas prices marginally lower coming into Thanksgiving this year has the oil watchers all aglow – but I am less than convinced.  The market is painting for me a far different story and we need to see the signs correctly to position our energy portfolios.  

The dropping price of crude oil from the highs we saw during the late summer has most oil observers and the oil pundits excited – and the ideas behind that dropping price are universally repeated.  We have an increasing supply profile from the newly developing plays in the Bakken, Eagle Ford and Permian shales.  We have a deep supply surplus that continues to pour oil into the financial nexus at Cushing, Oklahoma, causing 6 straight weeks of stockpile builds.  We have diplomacy breaking out in Iran, where the talks continue and where most observers see some sort of agreement coming in the next few weeks.  That would open the floodgates on Iranian barrels, including 100m barrels of stored product and another 1.2m barrels a day of production potential that would immediately be unchained.  

Holy croakers, Batman – there’s a perfect storm of lower prices for the long term brewing here, isn’t there?

Not so fast.  The market is not being so quick to believe this long-term trend is coming, and neither do I.  

Yes, there is undoubtedly a physical logjam of domestic crude…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




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