How glorious. The good tax paying folks at Morgan Stanley and Barclay’s are throwing meated loaf at the vagabonds who’ve been buying up crude these last few months. The nature of this rally has been nonsensical by ‘low-information’ players, regular Joe Schmoes, running about the market with money in their hands. It won’t take long before someone hits them over the head with an oil barrel and then takes their money.
“Non-fundamental rallies can last for several months and near-term catalysts may be lacking, but a macro unwind could cause severe selling given positioning and the nature of the players in this rally,” Morgan Stanley analysts said.
Barclays analysts said they were “not yet convinced that prices will remain here or go even higher.”
“Still-elevated inventory levels, the return of some disrupted supply, further boosts to Saudi and Iranian supply, and increased non-OECD product exports all have the potential to move prices lower over the next several months, especially if broader macro sentiment shifts,” they wrote.
‘Given positioning and the nature of the players in this rally,” said Morgan Stanley–whilst dusting their cigar ash onto the floor for the maids to pick up. Very nice prose.
Markets have halved today’s losses. Oil is near the lows, off by 2%.
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China loading up on the Crude……..http://www.zerohedge.com/news/2016-04-25/one-chart-shows-where-worlds-record-surplus-oil-has-gone
China has had about a million worker drones building storage tanks for the past 15 months.
That Perseus statue is the greatest
Interesting guy.
https://en.wikipedia.org/wiki/Perseus
No problem. Cashed my oil gains. Let the barrels fall where they may.
Loved this line:
“the nature of the players in this rally” = small fish in a big pond, about to get eaten