While the Saudis and friends cut production, the American frackers have been busy little bees — producing as much crude as they could possibly drill. US production rang in at 450kbpd, in the five months ending in February. Moreover, total US production increased to 9.2 million bpd in April, up from 9.03 the month prior.
Based on the current trajectory, US production is increasing at a million bpd clip.
The vast majority of the gains were enjoyed in the Gulf of Mexic, with output rising by 228k.
US rig count continues to expand, now +120% from the lows in 2016.
All of this is having a deleterious effect on the price of crude, now lower by a resounding 2.5%. Oil and gas stocks have followed the commodity into the sewers — off by 2.5%. This is providing airlines with a rich bounty — since jetfuel is bound to get cheaper with all of this crude oil for sale. Shares of DAL, UAL and AAL are higher by more than 3.5%.
Nonsensically, retail stocks are shooting higher too. More or less, they’re higher by 2.5%. The old theory was cheaper crude left more money in the pockets of spenders. But that theory had been dispelled years ago when crude collapsed and the consumer didn’t respond. Or, maybe people are exuberant about COH. Either way, this rally is 100% artificial and not to be trusted.
I do, however, like crude down here and would consider buying more, should Exodus produce a deep oversold signal.
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I’ve posted this before. There are too many marginal players still hanging around–they need washed-out before oil prices (and consequently oil stocks) can see any sort of sustained price increase.
They couldnt get -5% -6% on vix TODAY
Not at low 10 you fuckers couldnt get it
Vix was squashed the last two sessions
About 5-6%, that doesnt work bottom-range
Suck it manipulators you dont have infinite power
Natural Gas would be preferred over oil. Electricity. If the grid can even handle electric cars then this is the place to be regardless its the new coal for a majority of the world besides sunny places. Maybe Uranium if people build French style reactors. Although oil is priced on the cheap side considering only a generations worth is left. Oh well. Retail sucks. Why jack up prices on Chinese stuff 100 percent? Lame as hell,