Home › Forums › Refining Community › Refinery News › Oil Falls Lows after Inventories top forecast – Speculation not demand is driving market…..again › RE: Oil Falls Lows after Inventories top forecast – Speculation not demand is driving market…..again
I don’t understand why the oil industry & its traders are letting Wall Street Fund traders & Speculators steal their profits as they manipulate prices on both oil & products to trigger a sale for their futures hedge on higher prices EVEN THOUGH FUNDAMENTALS DEMAND LOWER PRICES OR REFINERY ECONOMIC CLOSURES.
If oilmen don’t stop playing the ostrich game and take this issue head on ……. then they deserve to go out of business. The industry is well into the production peaks for gasoline season when historically rates are maxed out & imports are needed but fundamentals are saying there is very LOW demand for either crude or products! Utilization rates are at less 84% (which are recent highs); companies are taking turnarounds to stay in tankage and stop margin losses; crude inventories are at highest in ten years and rising; even small increase in production utilization are now causing diesel prices to drop (diesel storage is also at high levels) …… SO WHY HELL ARE PRICES GOING UP???
Speculators/Mutual Fund traders have taken forward positions at $95-100/BBL on crude and now they are using any excuse and pushing paper prices to rise against strongest fundamental signals to drop (as article indicates even $80-85/Bbl crude is overpriced now) – just so they can unload positions and steal profits from the industry yet again. Come on management pull your heads out and take these guys out before they take you out. Make some big reverse plays and back them up.