Crude Oil 2021-Q4

The Cushing oil hub is only a storage field or transit hub. It is mainly used to ship to gulf oil terminals. Cushing was pulled hard because of the oil export at gulf terminals. With WTI/Brent spread shrinking and WTI at $84 level, the oil trade has been down. Not many WTI buyers.

Also, about 250,000 BBL/day gulf production is coming online probably sometime this month. Cushing can be filled up due to lack of gulf export.
 
When I was trading for the firm, we always call Goldman energy analysts as monkies. They have no idea what is happening. But certainly they get a lot of followers. So they move the market. We kinda knew what they looking at....
 
RedSun said:
Shorting opportunity again....
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huh?
As of now, the up force momentum is very strong

It has been going up since today's European session.

yesterday it was a long red candlestick.
seems like today it will end up with a long blue candlestick.
 
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Then?

What is driving the CL market? Inflation hedge?

I covered my shorts and entered long at the $80 lower band. Then sold this morning in the technical rebound. Now short again.

Just do not see that we'll get to $85 any time soon. More CL stock builds are coming again. Also the news on Iran and US gulf oil production coming online.

OPEC+ is old news. The Dec/Jan spread should come off. Cushing may fill up next week....

If I'm long, I'll consider this is a good selling opportunity. Both technicals and fundamentals are not in favor of crude oil staying at $82 level.
 
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The CL support line is at about 80.50 range. $80 will be an important level for both camps to fight for. $80 may eventually break down.
 
The problem for the bulls is that, the bull length is so long. Any start of long liquidation will open the flood gate and longs will sell into any meaningful rallies. So we turn buying dips into selling into rallies.
 
RedSun said:
Wonder if Goldman and BofA/Merrill analysts still maintain that CL market is tight and we'll be looking at $90 or $100 CL price soon? I just feel the CL rally was fueled by those monkey bank analysts.

A lot people load up CL contracts as inflation hedge only. But CL is not just a financial contract, but has the energy commodity underlying.

I figure those bank analysts never worked for energy companies.
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Have you actually read those research reports lol?
 
I read before when we had subscriptions. Not paying for the monkey reports any longer. They make traders losing money...

We move physical oil and nat gas. Not running some reports or computer models.

So where is the $90, $100 or $120 crude oil price?
 
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