These are the same guys who say we will never see $100.00 bbl oil again in our lifetimes. They must think the dollar will be king forever. They really, fundamentally, seem not to understand our systems. Like, they may not really understand just how fast we will start drilling again as soon as oil rises - which it will. They do not understand inflation.
I think they are better served maximizing in a consistent manner. Hell, Saddam attacked Kuwait in 1990 when oil got too low - it's not a stable strategy.
EIA Report from Inventories last week:
Draw down of 3.2 mill bbls oil, increase of 1.0 mill gasoline.
Very slightly bullish I think.
Here is EIA report for the week ended May 20:
U.S. commercial crude oil inventories (excluding those in
the Strategic PetroleumReserve) decreased by 4.2 million barrels fr
om the previous week. At 537.1 million
barrels, U.S. crude oil inventories are at hist
orically high levels for this time of year.
Total motor gasoline inventories increased by 2.0 million barrels last week, and are well
above the upper limit of the average range.
Bullish IMO. Oil down though.
Here is the report:
Oil Build of 2.8 mill bll, gas up .5 mill. Bearish again.
BTW, I am and have been long LGCY since December so these are not bearish calls for trolling purposes. I would just like to see some drawdowns.