"High temperatures" theory for oil decline, scapegoat?

D

Daal

Are analysts coming up with theories cause they just cant admit they have no idea what is triggering something this big?This is not to say it didn't had an effect but this is a more than 15% decline and the oil market is huge. Its not just some temperatures. When oil was hitting $78 they were coming up with any news from Israel to justify it, now we have the same thing
 
Quote from Daal:

Are analysts coming up with theories cause they just cant admit they have no idea what is triggering something this big?This is not to say it didn't had an effect but this is a more than 15% decline and the oil market is huge. Its not just some temperatures. When oil was hitting $78 they were coming up with any news from Israel to justify it, now we have the same thing
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its more technical.. heating oil is down only half by percent basis.
 
a lot of hedgie's and institutions etc. unwinding very large positions, imo (and from what i have heard "on the street" ) accounted for a big part of that drop
 
Global Oil Industry is clearly in yet another conspiracy to preempt the Democrats from putting in place windfall energy taxes and anti-big oil legislation. They will now be able to effectively argue "where was congressional concern when we could not make a profit to offset losses in oil field production and new drilling". They have learned how to pander to the ingrained need for Democrats to create a new co-dependency by a Robin Hood taxing of "the Rich" to give it to the have-nots. The oil companies decided to join the merry men and become temporarily poor by driving oil prices down. So now Dems will have to tax someone else and give THEM subsidies. My guess is the suckers committed to the Ethanol handout program will get their money reallocated by Dems to the oil companies with new drilling subsidies. That policy change should make corn once again cost effective to eat for food rather than converting to higher cost ethanol and sugary drinks. :D

When in doubt - start a new conspiracy. :p

TS
 
Quote from Trader KGB:

Occam's razor. whitster is right about the unwinding. Simply too much long exposure on the Feb crude contract. 293,775,000 barrels built up. I don't think we've seen the end of the selling before the Feb contract expires next week.

http://futures.tradingcharts.com/marketquotes/index.php3?market=CL
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Absolutely. There is way too much dumb money speculating in the energy markets. I'm not referring to nimble retail traders but the large institutional retirement funds leveraging their accounts with cheap liquidity.

http://elitetrader.com/vb/showthrea...rpage=6&highlight=bsmeter crude&pagenumber=18

Ah yes, and this one.

http://www.elitetrader.com/vb/showthread.php?s=&postid=1315361#post1315361

I'm looking for a few more downgrades by the street. Once the dumb money stampedes, it'll be a safe time to buy.
 
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