I'm mostly recording this for my own personal records.
The crude oil market has been fundamentally bearish and therefore price has dropped from 52ish to 40ish. Today we got a clearly bearish EIA report, however the gasoline draw was large it was not enough to offset the others. Price initially dropped to new lows and since has rallied to almost 41.
So the question is who's right. If we look at the inventory report alone price should go down however you could make the argument that it was oversold before and was long overdue for a bounce and that just happened to be today.
I covered shorts on Friday last week and was pretty sad about it through Monday and Tuesday this week. I covered because of the divergence in the dec16-dec17 calendar spread. I guess we will see who's right going forward but I hope it rallies to 45 so I can short it again. However careful of the inv HS even though HSs don't seem to work that often in crude.
The crude oil market has been fundamentally bearish and therefore price has dropped from 52ish to 40ish. Today we got a clearly bearish EIA report, however the gasoline draw was large it was not enough to offset the others. Price initially dropped to new lows and since has rallied to almost 41.
So the question is who's right. If we look at the inventory report alone price should go down however you could make the argument that it was oversold before and was long overdue for a bounce and that just happened to be today.
I covered shorts on Friday last week and was pretty sad about it through Monday and Tuesday this week. I covered because of the divergence in the dec16-dec17 calendar spread. I guess we will see who's right going forward but I hope it rallies to 45 so I can short it again. However careful of the inv HS even though HSs don't seem to work that often in crude.