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WTI crude tumbles 1.1% to $87.56 after the EIA reports an unexpected rise in oil inventory and...

WTI crude tumbles 1.1% to $87.56 after the EIA reports an unexpected rise in oil inventory and greater-than-expected bumps in product inventories. USO -1.3%. Gasoline ETF: UGA -2.1%.
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Comments (2)
  • tonyeg
    , contributor
    Comments (166) | Send Message
     
    Again like I have said since April at +$104 WTI the world is awash in oil. Wait till it hits $80 then short again, it will go below $70. Russia (who want Obama to cut a better deal on nuclear weapons) and Saudi Arabia keep pumping to make up shortfalls from Iran. Iran who is not in a position to negotiate with China, their only major customer, will need to pump more to keep their revenue needs in tact to keep their government in power. China is slowing they need less oil. The US total oil consumption is decreasing year over year while it is on a path of energy independence by 2020. The major corporations during this earning's season expect economic growth in Europe to be flat for the next five years. Oil speculators will give up on their expectation of $100 a barrel oil.
    Obama says there is no need to bomb Iran. Israel doesn't need too since the US has avowed not to allow Iran to get a nuclear weapon. The US is winning the covert war with Iran. With Syria falling and soon Hezbollah will be on the run, Israel will start to feel more safe and focus on developing their own huge off shore natural gas resouces.
    25 Jul 2012, 01:00 PM Reply Like
  • Glenn Doty
    , contributor
    Comments (1116) | Send Message
     
    Unexpected by who?

     

    We're ramping up production at an incredible rate, Saudi Arabia increased production for the full amount of the sanctions against Iran, Russia's increasing production, Brazil's increasing production, China's satisfying their increase in consumption by cheating the sanctions against Iran, and Europe and Japan are in recession.

     

    Every possible indicator is bearish, and they jacked the price over foolish hype concerning the sanctions. OF COURSE there was a massive build.

     

    http://seekingalpha.co...
    25 Jul 2012, 04:58 PM Reply Like
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