I would be quite concerned if long.*
From Reuters:
*Yesterday's intro to "EIA Drilling Productivity Report: Production Per Rig Up Across the Most Prolific Shale Plays" was:
The rebound in oil lost its momentum on Tuesday, with crude prices falling for the first time in four sessions after the International Energy Agency (IEA) warned of more selloffs in the near term as stocks continue to rise.
Oil stockpiles in member countries of the Organization for Economic Cooperation and Development, which groups the world's richest nations, may approach a record 2.83 billion barrels by mid-2015, said the IEA, which advises the West on energy policy.
U.S. crude futures CLc1 fell below $51 a barrel, heading for a test of the $50 support level. By 11:18 a.m. EST (1618 GMT), U.S. crude was down $1.87 at $50.99, after a session low at $50.79.
Benchmark Brent crude LCOc1 fell $1.03 to $57.31.
"It's the battle of the oil outlooks playing out here," said John Kilduff, partner at New York energy hedge fund Again Capital. "The IEA report is a good reminder that there's still a lot of supply to come and it doesn't give much hope for the bulls who say we've hit bottom and are now on the way up."
While the supply-demand balance in oil was expected to tighten by end-2015, the IEA cautioned that "downward market pressures may not have run their course just yet"....MORE
Looks like a price reversal today.Of course that followed on Friday's "UPDATED--Astenbeck Capital's Andrew Hall 'See's $40 Oil ‘Absolute Price Floor’" which was a bit early:
After trading as high as $53.99 the futures are now at $52.82.
This bottoming process is going to be more drawn out than some are hoping.
Did I ever tell you about the time the DJIA closed at 2999, two days in a row?...
A short on today's rig count release sounds plausible in light of next week's drilling efficiency report.Finally, a couple years ago I talked about DJIA 2999.
WTI front month March: $52.90 up $2.42, Brent $57.99 up $1.42....
(again)
