Wednesday, September 10, 2008
The Oil inventories reported by the U.S. Department of Energy showed a draw of over 15 million barrels of total products. Next week should show a significant drawdown as well.
It would appear that TPTB have successfully driven all of the speculative money out of the Oil futures market. But the physical market still rules, and with inventory drawdowns like this, and the less than spectacular production data, going into the Northern Hemisphere winter heating season, it is my bet that the climax selloff/capitulation in oil, whenever it comes and whatever it looks like will be the moment to reenter the Oil futures market.
With oil down with draws like today, a sell off down to $80 or $90 is not only possible, but probable. Then you got to pick your spots.
Mentatt (at) yahoo (d0t) com
Posted by The Short Story Man at 8:20 AM