Monday, September 5, 2016

Labour Day Marks End of The Oil Rally

"After 2008, global Central Banks sponsored an eight year short-covering rally culminating in maximum risk exposure amid collapsed economic fundamentals.


MW: Sept. 5, 2016
Labor Day Gasoline Prices Lowest Since 2004

Gasoline demand may drop by around 400,000 barrels a day after Monday, and that will help send prices lower, said Tom Kloza, global head of energy analysis at the Oil Price Information Service.

For three months over this summer oil (black) tested $50 but couldn't take it out to the upside on the weekly. The same peak level from last Fall:

Oil (black) with Gasoline (red):
Blue arrow shows what happened after last Labour Day:

Compliments of cheap money refinancing insolvent oil companies:

U.S. Oil ETF:
Showing the true cost of supporting the oil market, due to futures contango aka. oil glut: