Crude Problems
Gartman sounds the alarm:
Noting the Hunt silver problem back in ‘79, Dr. Verlager wrote:
Dennis, There are clearly big problems in the dated crude contracts (Dec 11 to Dec 2016). One or more firms that sold the oil is trying to get out. They have a problem, though. The parties that are long do not want to exit. The situation is evident in the shift in open interest. From Monday to Tuesday the number of contracts outstanding for delivery from June 2013 to Dec 16 declined while prices jumped $8/bbl. It is a classic squeeze. I would assert that this is not an oil market issue because the other indicator of long term oil prices, the BP Royalty Trust (BPT) did not increase with the 2016 crude. Someone has a big problem - and it could get much worse unless NYMEX and ICE order trading for liquidation….1979 redux.
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Posted: May 21st, 2008 under Commodities, oil.
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