iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,473 Blog Posts

An Absurd Inventory Build Sends Crude Lower; Energy Longs Await the Gallows

WTI should be lower by 10% on these numbers. Look at them; they’re comical.

Crude oil inventories had a build of +9.357 mln (consensus called for a build of +2.5-2.7 mln)

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I’m talking my book here, short XLE from $63+; but I cannot think of a better place to put assets than to be short oil stocks here.

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Ultimately, all of the gains enjoyed by the new oil mavens will be rescinded and absconded with. There are dark days ahead for all energy longs.

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3 comments

  1. goose20

    Not so fast Fly, gasoline under $1.75 will lead to a boom faster then you think but I agree good short term trade and great call for now. Good luck Dr!

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  2. nocturne

    Hedge Funds sold some crude to take profits. Showed up in USO share count.

    Cushing inventory down and production down down.

    Good short from 42, but I suggest taking short profits here and at 38 if you are so lucky.

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    • zerosum

      Once the market discovers – again! – that all the talk of “agreements” among the OPEC producers is crap, back to the $20s, this time much faster.

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