Mike “Mish” Shedlock's
Sitka Pacific Capital Management,Llc
A short blog today, the oil market was carnage yesterday and company announcements are thin on the ground, not surprising in these markets.
Crude oil fell sharply, the worries from China are leading the fall and with the devaluing yuan traders sense a currency war into the bargain. The inventory figures, as intimated here yesterday were difficult to read but overall the market read them as bad news. The reason for that was not the headline figure, a draw of 5.09m barrels would normally be good news but not this time, it seems that the year end tax breaks were responsible for much of that although the analysts still got the sign wrong. No, it was the 10.6bn build in gasoline inventories and 6.3m build in distillates that worried the market, where has all the demand gone? Into the bargain stocks built at Cushing rather emphasising the tax story.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
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