With WTI now down over 17% from its mid-June highs, and energy stocks just beginning to wake up to the 2015-analog collapse, fears are rising that once again low oil prices are not ‘unequivocally good’ for stocks or the economy. Between record speculative long positioning in futures, the fundamental strength of the dollar and surge in gasoline inventories remain the big overhangs (along with rising storage levels at Cushing as demand begins to fade seasonally).
Sept 16 WTI is now down 17% from its recent highs…
Back to unchanged on the year at 3 month lows…
“It’s the same things that have been driving it for the past few days now, gasoline inventories haven’t declined as much as people thought they were going to,” says Michael Hewson, analyst at CMC Markets.
And Energy stocks are catching down fast…
Tracking last year’s pump-and-dump of hope perfectly.
As demand is set to tumble…
It’s not over yet. Tonight’s API data will likely be the next ccatalyst one way or another.
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