Reuters: Oil Falls Below $98 on Swelling US Crude Supplies

Supplies probably aren’t ‘excessive’ or US companies wouldn’t import so much and futures spreads would be in contango instead of backwardation, and WTI now trading above Brent is another sign inventories are back towards the tight side.

Oil Falls Below $98 on Swelling US Crude Supplies

Oil held steady around $98 a barrel on Friday, off its recent record above $101 as rising U.S. crude and gasoline stockpiles added to evidence of slowing demand in the world’s largest consumer.

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4 Responses to Reuters: Oil Falls Below $98 on Swelling US Crude Supplies

  1. warren mosler says:

    the idea is that over long periods of time commodities tend to underperform ‘finished goods’ which I first saw an economist named Prebbish (spelling?) use to explain why the gap between emerging market nations that were producers of raw materials and the developed world continually widened.

    currently commodities have been over performing, but if you bot gold back in 1980 it would have to get to well over 3,000, for example, to catch up with most equity investments bought back then.

    Reply

  2. jcmccutcheon says:

    Warren, are you saying commodities underperform stocks in an inflationary environment like todays? If so then why? Many CNBC analysts are pimping commodities.

    Reply

  3. warren mosler says:

    can’t argue with your politics!

    inflation is good for most stocks. the fed hiking to attempt to fight inflation isn’t so good in the short term, but stock, real estate, and pretty much everything else catches up with cpi, apart with commodities which historically underperform. But they do have their moments!

    Reply

  4. hoover printing presses says:

    If oil pricing is causing joe 6 pack to lose his standard of living through inflation, while princes build artifical islands in Dubai while J6P can’t make his car payment, isn’t it in j6p’s interest to elect people that will send military might over to the oil guys and take their “good” by force? Also if J6P is losing his job to an asian because they will not revalue their currency, again doesn’t that give J6P an incentive to elect someone who will throw up trade barriers or to use “force” on the other nation? If my daughter saw one of your sleek super mosler cars out in YOUR driveway with the keys in it, she will drive it off rather than work 20 years and pay you for it Warren. ;) I feel my daughter is not alone in the economic morals she has. I wasn’t in the USA in the 70’s, what did j6p do back then? Wasn’t there lots of wars and shenanigans in the middle east during those years? How did military technology stocks do?

    Reply

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