Considering that we've had an incredibly warm winter, which has significantly dulled winter demand, how come prices never really went down?
reminds me of
Inspector Gregory: "Is there any other point to which you would wish to draw my attention?" Holmes: "To the curious incident of the dog in the night-time." "The dog did nothing in the night time." "That was the curious incident," remarked Sherlock Holmes.
Holmes: "To the curious incident of the dog in the night-time."
"The dog did nothing in the night time."
"That was the curious incident," remarked Sherlock Holmes.
Then the US went colder than normal and drew normal amounts of heating oil/propane from storage. The gasoline surplus that was building like mad slowed and reversed into a big draw as usage went up and shutdowns for maintenance and accidents occurred. Throw in big problems in Nigeria, Iran tension, the world economy not slowing and you get crude back up to fall levels and gasoline to ridiculous cracks.
And the big point people seem to be ignoring is OPEC actually held together and took 1-2 MMBD off the market since last fall. One cut about Dec 1 and a bigger one Feb to put the market back into a tightening cycle. Their failure to fail as a cartel has fooled many people, me included.
These short term effects have much more to say about short term price movements than the longer term problem of big oil not finding any new giant fields.
