Let me get this straight:
| Oil markets have you feeling like you’ve gone through the looking glass?
• We’ve got so much extra oil these days we’re storing record amounts of it in tankers at sea.
• And in Cushing, Okla., the nation’s main oil storage hub, the tanks are getting pretty full, too.
• As a matter of fact, just about all the fundamentals say supply is going to keep outpacing demand for a while.
• Heck, even this guy thinks it should be $55 per barrel.
But oil stays above the $70 mark on Thursday, supposedly because the dollar got a little weak-in-the-knees? And it’s more of the same today?
It’s this sort of stuff that makes the regular human being feel like they live in Wonderland.
At least natural gas markets have the decency to behave reasonably, as producers are unwilling to shut-in existing projects because long-term economics are still good.
But the scary thought of the day is from a guy who looks at commodity trading as strictly a mathematical/mechanical process: “Energy is not looking as hot, but once we see natural gas bottom and start heading higher it should be fun.”
Oh well, there’s always next decade.