Ron2008

World Series of Crude Oil: Winner Decides Winter Gasoline Prices

Looking at the new DCOT report, the Manged Money net long percentage of total open interest is at its' highest level for the the entire 3+ years of data given to us by the CFTC. Even higher than it was in 2008.

In the last 3 weeks the Managed Money group has gone from 60,002 net long to 130,712 net long in crude oil. And not surprisingly, the price went from 66.71 to 79.09 on the day of the reports.

Managed Money is clearly driving prices.

The Manged Money group also added a huge 21,605 net longs last week in Unleaded Gasoline. Highly unusual for this time of the year.

What is the Goldman and JPMorgan game plan? Looks like going long right now. But that doesn't make sense to me. There are very few fundamentals to back up this latest rise. They are on their own.

Gasoline and Diesel Fuel Prices: Scaring Investors in Time for Halloween

Yes there will be decreasing imports, but there are zero signs of increasing demand. And today's jump up in prices will not help demand at all.

I fail to see how a report that said gasoline demand decreased was bullish for prices. But that is where the specs want it to go.


On Oct 20 01:27 PM ryanclarke wrote:

> If the dollar continues to weaken and gasoline continues NOT to be
> imported from oversees into the United States, the U.S. should experinece
> a rerun of the Fall of 2007. My prediction is the following: increasing
> gasoline consumption in the U.S. ( +9 MBPD ) should produce low levels
> of gasoline in U.S. storage within the next two months which should
> induce oil to at least $100/drum by next spring.