WC Whiner

Oil Inventories On the Rise: Where's the Shortage?

Stocks are the big issue for energy right now. If prices are market-clearing, whyn would stocks be rising? That said, I am not certain there has been a 560mm barrel build. Total US crude stocks are 336mm barrels, which is about 8% above year-ago levels, but does not congrue with your analysis.

FD: I am long vol, short delta in the energy complex.

Off Its Peak, Is Marathon Oil Worthwhile?

Not a bad column, but how can you talk about MRO, 2/3ds of whose revenues and 1/2 of whose income comes from refining and marketing, without mentioning the drivers of RM&T profits? Crack spreads are taking it on the chin lately. Long-run, I think sub-$5 spreads are unsustainable, but maybe you could have mentioned them, once.

FD: I have had refiner shorts (though not MRO) on since spreads were in the high teens, headed up, so I am talking my book.