Oil Pricing And Fundamentals Often Dislocate…Like Now [CHART]

Oil Pricing And Fundamentals Often Dislocate…Like Now by Todd Sullivan, ValuePlays

“Davidson” submits:

Below is the updated chart of the U.S. Energy Information Administration monthly data from 2010- which includes Friday’s report. Link:

Two weeks ago I sent the EIA data in chart form with the comment that psychological not logical thinking is roiling the security markets. Where in 2012 fears of “Peak Oil” resulted in a price spike over $140bbl during a period when PRODUCTION EXCEEDED CONSUMPION, today’s investment panic is based on several months of excess production. The only explanation why “Peak Oil” panic occurred in 2012 but not today has to be laid to market psychology. Market psychology is impossible to predict.

Morningstar Investment Conference: Using Annuities In A Portfolio For Added Stability

portfolioOver the past decade, annuities have fallen out of favor with investors. These retirement products became popular in the US during the Great Depression when potential retirees were looking for a secure income stream that would be unaffected by stock market volatility. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More


Friday’s data from EIA indicates that CONSUMPTION EXCEEDS PRODUCTION (92.4Mbpd vs 91.9mbpd).

Be patient!! Market psychology always has periods of excesses in any direction. This always reverses if not supported by economics. Our current panic that oil production is in excess with no change on the horizon is one of those periods. It will pass!