Crude Oil for December 2011 delivery breaks $100... about 4 minutes ago. (Forget the front month... with refineries down the front month is weak. Look at Brent.)
I am somewhat surprised the equity market does not look at that and burp... because I doubt its just a head fake.
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3 comments:
It seems like 2007 all over again. The markets interpret high oil as growing economy. Who's going to mess the sheets in 1012?
Regards,
Coal Guy
Jeff Rubin on WTI Vs. Brent crude:
http://www.theglobeandmail.com/report-on-business/commentary/jeff-rubins-smaller-world/which-price-is-really-the-world-benchmark-for-oil/article1890014/
Excerpt:
Until TransCanada can connect the ever-increasing flow of crude from the oil sands to refineries on the Gulf of Mexico (not likely before 2013), there is going to be a bigger and bigger disconnect between WTI and global crude demand as more oil piles up at Cushing.
As that happens, the oil industry and the investment community will look to Brent as the new benchmark for global oil prices. Soaring purchases of Brent crude contracts have already driven the European oil benchmark to the highest level in five months against NYMEX oil futures contracts as more investors bet it is a better indicator of global demand.
So don’t be fooled by bloated inventories of Canadian crude held in storage in the middle of nowhere. Check out the Brent March futures contract if you want to know where world oil prices are trading.
And when you do, you may just find you are already in a world of triple digit oil.
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