Monday 9 March 2015

PM Bolt-On: Oil, de-risking.

Good Evening,

Chaos ruled today, with meetings and bumping into an EMC reader, allegedly there is one out there, in addition to Leggie!! The FT jumped with, Traders left adrift as oil storage trade loses its lustre, with options expiring 20 March (quadruple witching) quarterly expiration (Freaky Friday) all coming, expect some volatility on the back of these equity rallies. 

Comments section proving worthwhile for some thoughts, as traders drop stock/supplies back to market, even allowing for seasonal changes the market is going to get twitchy with the likely build in inventories/supplies. Without the fast-forward button applied to strategic storage its going to prove very difficult to add further for Chinese reserves. Li and myself having just recently spent significant time going over reserves. The summary being in the absence of improving demand global, the supply has to give. 

In omnia paratus, 

Atb Fraser



2 comments:

  1. Fraser- Hi- Your EMC encounter obviously wasn't with The Stale Altas Bull or you wouldn't have any unbroken fingers to type with, so perhaps it was the wanderer, Ian...

    Re Oil- Indications are that oil is being stuffed into any storage facilities that can be found around the world, so my wifes empty jam jar collection here could become a valuable commodity to the Yanks or Chinese soon. I agree that a good % of the current supply has been and is being stored, which is a massive negative for the supply side going forward. Some probably thought they were securing oil at v low prices but this can only go so far physically and it all has to replace future supply so the we could be heading down to below $40/barrel esp for WTI (given the refinery issues) soon.

    Re IGAS- the transformation deal is done today with INEOS, so I expect it to double from 24p- that's just based my early fag pack calcs tho and no doubt some volatility today, as shorts get squeezed.

    Cheers. The Leggie

    Ps In omnia paratus- hmmm- Urban Dictionary says-
    after jumping off a building and living...just scream "in omnia paratus "
    I hope you haven't been doing that again Fraser :-)))

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    1. Oil has proven that supply has not given and demand is no where near inventory, circa 8.5% drop on the weak (Poor I known) but all the same profitable. Over to the myopic Baker Hughes speculators now. Cheers Fraser

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