ZH: Beware The Bakken
As analysts cheered the resilience of shale plays after the 2014 price collapse, nearly a billion barrels of Bakken oil were produced at a loss--about 40 percent of total production since the 1960s. Vast volumes of oil were squandered at low prices for the sake of cash flow to support unmanageable debt loads and to satisfy investors about production growth. The clear message is that investors do not understand the uncertainties of tight oil and shale gas plays.
The Fed decided the U.S. is decoupled from Globalization so they imploded oil in 2014:
Fed balance sheet (green), Chinese (FX reserves, red), commodities (not shown), and oil (black):
Now, that favour will be returned compliments of fake reflation and the final round of the decoupling fantasy...
Gamblers are ALL IN betting that tighter monetary policy will somehow benefit oil this time around versus imploding it a la 2014. And yet every other time futures spec positions rose, the price has followed, except this time. Is that a problem? Or a feature?
Oil net specs, new ALL time high:
New record inventories (black), which have peaked at the end of April for the past 3 years:
Shown with the Energy sector stocks (red):
Industry-owned bukkake whores:
ANZ Research pointed out that crude volatility has been at its lowest level since 2014
Oil volatility is the lowest since 2014, when oil collapsed. It's fake news though so don't bother checking facts...
Gasoline demand imploding in real-time. But don't tell anyone, because everything you read here is private and not for the use of any zombie who could come here and read it for free...
And Nat Gas...imploding because of the weather of course.
It can't be due to any longer term causes which could impinge upon the corruption-oriented lifestyle, duh...