Well I pride myself on getting up early to talk about the markets, but I couldn’t get myself to believe that this IEA report was all that. Sure, US production is only going higher, but as I talked about in the morning Newsletter, global demand is damn strong. China just took over the US as the world’s biggest oil importer. If we ever do get serious about Japan making a comeback, all of this WTI is going to have a big job ahead to keep our export business strong.
Now I do think that everyone jumped the gun yesterday and we’re seeing a lot of that length second guessing today. Well more like second selling. We broke through that 10100 level that I was adamant about on the trade idea, but we held at 10060 instead of 10040. That’s what I get for being greedy. I’m hoping the HOCL will make up the difference.
With still no resolution in sight on the Government shutdown/debt ceiling, I think that we can’t believe they talk until we see it put to a vote. That means lower here until the deal is done. We may not get any push up if it is done because more people are coming to my side and figuring out a delay of a few weeks could be even worse in the big picture. No Retail Sales numbers, no COT report later today, no good.