Wednesday, July 6, 2016

Black Swan Diving Into Pavement

Profit for turning crude oil into gasoline, known as the gasoline "crack," fell to a February bottom below $13 a barrel as oversupply in the motor fuel forced U.S. refiners to cut output. Vessels carrying gasoline-making components could not unload at New York Harbor this week due to a glut.

U.S. gasoline inventories (red) with gas price

Deja vu of one year ago, EXCEPT the glut is twice as wide now...

"At below $15 a barrel, the crack is at less than half the profitability it showed this time last year."

Beyond all asinine
Oil inventories with oil price

"Who wants more oil?"
1X leveraged oil ETF (weekly)

Oil (red) versus stocks since June 8th:

Exxon versus oil price: