by Outcast_Searcher » Sun 04 Mar 2018, 13:24:22
$this->bbcode_second_pass_quote('Yoshua', 'S')omething has happened to the WTI price. Inventories has fallen, but the WTI hasn't risen to previous levels. Peak oil will take place if the oil prices stay below the cost of production. Oil companies are still cutting capex to survive in this lower price environment, which will lead to a fall in production in the coming future. If the oil prices don't respond to falling inventories and falling production, then the production will have to continue to fall.
As if cherry picking Cushing in the short term meant anything in the global scheme of things.
As if WTI prices in the past weeks weren't strongly correlated to the US stock market. The price in general likely would continue trending up, IMO, but when the US market takes a significant hit over a week, the longs get skittish and sell off net WTI contracts, seeking more liquidity.
As if your claim of "lower" WTI prices weren't crushing the 2018 MAP claims of the ETP paper like a bug, week by week.
Nothing new. Nothing surprising, re recent WTI behavior.
This has no more meaning than shortonoil's claims during the Feb. initial US market scare/dip that the US dollar is "worth less than toilet paper", showing a short term DXY chart. Yet if one looks at, say, a ten year chart of the DXY to gain a bit of perspective (as I did to check his claim at the time), then one sees that prior to 2015, the DXY was consistently lower, and averaged meaningfully lower than the recent price hovering near 90.
Oops. So much for the dollar signalling imminent destruction of the US or global economy.
You really don't need to constantly toss out this random nonsense here. Zerohedge and lots of doomer blogs already have that hobby well covered.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.