Speculators might be in for a crude awakening
Take a look at the chart below: The chart illustrates that there has been an immense decline in US consumption of oil since the big rise in the first half of the last decade. The demand destruction...
View ArticleAn OPEC ‘Tax Cut’ on the way?
Ever since last fall I have been arguing that the oil price was set up for a fall. This has nothing to do with the slowing global economy. It has only to do with the microeconomics of oil and the...
View ArticleWhat is oil’s renewed strength telling us?
The oil price plummeted precipitously in the second quarter. This seemed consistent with the Saudi estimate of a significant market surplus. This estimated surplus seemed to be in line with weakening...
View ArticleChina and the price action of crude
According to the Financial Times (http://www.ft.com/intl/cms/s/0/c7090954-347d-11e2-8b86-00144feabdc0.html#axzz2DLL2GBcB), China appears to have stopped filling up its strategic petroleum reserve (SPR)...
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