Contango is back

[ogarbitrage]

I think we will get a temporary technical bounce in the mid 40s, so in that, I tend to agree with Mr. Luorio. However I don't think that will be the bottom. Given the supply situation, I expect the market to test "the bottom" for several months until a new range is found.

 

[ogarbitrage]

Damn brother OG, you are a market mover....FRO up 12% today.

FRO up another 20% today.

 

[iflyjetzzz]

FRO up another 20% today.

Dennis Gartman gave it the thumbs up, along with other tanker stocks, on Fast Money last night.

 

[ogarbitrage]

Yea, I'm glad to see the media picking up the storage trade. This is just the beginning for Frontline. I expect them to easily manage their debt, eventually reinstate their dividend, and the appreciation of tanker values will send them many multiples higher.

 

[FCXoptions]

FRO up another 20% today.

Thanks for posting that the other day, by the way. I bought in at $2.66 last week on a small position after looking into it.

 

[kinggyppo]

rig count in US see link

http://phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-reportsother

 

[ogarbitrage]

 

[ogarbitrage]

Russian diesel exports from Primorsk to rise 44% in January: Traders

Singapore prompt 92 RON gasoline swaps curve sinks to deepest contango in nearly 5 years

Med Crude-Urals slips in Baltic, Saudi cuts OSPs to Europe

 

[ogarbitrage]

Long term monthly chart of WTI:

 

[iflyjetzzz]

I think we will get a temporary technical bounce in the mid 40s, so in that, I tend to agree with Mr. Luorio. However I don't think that will be the bottom. Given the supply situation, I expect the market to test "the bottom" for several months until a new range is found.

I agree with that. There are a lot of traders who keep betting 'this is the bottom'.

I expect another selloff on tomorrow morning's weekly petroleum status report. I plan on covering some of my short on the dip from that report and stay a bit light for the rest of the week.