OIL INVENTORIES & TRADING DEATH

“What’s a little water anyway?!”

It’s 2 PM EST, and WTI oil has got a day’s range of … wait for it … 54 cents! The

20 Day Range MA, is at $2.01 … talk about a sigma miss, and that’s after the

latest crude inventory numbers today and the bombshell build last night. I said

before things would slow down going into the OPEC+ meetings around June 23,

but this is ridiculous.

And quite frankly, it’s days like this that make wide bid/offer spreads such

account killers via the CFD’s … with this kind of range, it’s almost impossible to

make any money. Fact is, if WTI breaks that 50.50 level and takes out 50 in the

days ahead, it could get quite ugly to the downside, even if OPEC keeps current

production cuts … the problem isn’t supply, it’s gauging demand … and the

market keeps getting reminded that global growth ain’’t there, which means no

demand for more oil to fuel said growth that ain’t there … the result is more oil in

inventory no matter what OPEC decides. Until these inventories start getting

worked off, oil has no hope on the upside for anything sustained in terms of

price.

Until tomorrow mi amigos … Onward & Upward!!

Have a great day everybody!

-vegas