{"id":8420,"date":"2015-05-24T06:56:11","date_gmt":"2015-05-24T11:56:11","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8420"},"modified":"2015-05-24T06:56:11","modified_gmt":"2015-05-24T11:56:11","slug":"what-does-exxon-know-that-we-dont","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8420","title":{"rendered":"What Does Exxon Know That We Don\u2019t?"},"content":{"rendered":"

What Does Exxon Know That We Don\u2019t?<\/a><\/h3>\n

Forecasts from the IEA and Goldman Sachs this week are trying to say that crude barrels are still overpriced \u2013 but the market isn\u2019t listening.\u00a0 I\u2019ve been convinced that crude prices above $60 are counterproductive as Goldman said in their recent note \u2013 but other factors are continuing to help push prices higher.<\/p>\n

Let\u2019s take a closer look and see what\u2019s going on \u2013 and what might go on in the near future.<\/p>\n

Some short-term fundamentals continue to push traders into long positions in oil.\u00a0 I\u2019ve been among the first to point out the large outflows of capital from just about every other asset class, save for energy stocks and commodities.\u00a0 This isn\u2019t particularly smart analysis, but clearly money managers and institutional investors are looking for \u2018value\u2019 in a very hot market \u2013 and oil stocks and commodities look just too low to them.\u00a0 For these \u2018value searchers\u2019, it\u2019s damn the fundamentals \u2013 full speed ahead, and oil catches a bid with every, even small bullish indication.<\/p>\n

As appears to be the case with Chinese demand, which has incrementally picked up in recent months.\u00a0 But it\u2019s not like Chinese imports aren\u2019t being met for the most part \u2013 they are finding more oil now than ever before in their history.\u00a0 And imported oil is not being used.\u00a0 Several reports have Chinese oil stockpiles growing for the last 7 weeks \u2013 an obvious way for China to hoard oil that they think is going to get more expensive later.<\/p>\n

US stockpiles have come slightly down in the last few EIA reports \u2013 a surprise for many who believed that storage would increase throughout the summer.\u00a0 Many are extrapolating that this drop in stockpiles is a harbinger of slower production from slashed numbers of rig counts, but this may be very premature.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

What Does Exxon Know That We Don\u2019t? Forecasts from the IEA and Goldman Sachs this week are trying to say that crude barrels are still overpriced \u2013 but the market isn\u2019t listening.\u00a0 I\u2019ve been convinced that crude prices above $60 are counterproductive as Goldman said in their recent note \u2013 but other factors are continuing […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[251,267,4390,376,416,3619,588,589,592,595,596],"class_list":["post-8420","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-eia","tag-energy-information-administration","tag-exxon","tag-goldman-sachs","tag-iea","tag-international-energy-administration","tag-oil","tag-oil-demand","tag-oil-price","tag-oil-production","tag-oil-supply"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8420"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8420\/revisions"}],"predecessor-version":[{"id":8421,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8420\/revisions\/8421"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}