While OPEC compliance remains key, it appears fundamental over-supply fears are mounting once again. Against expectations of a crude build and gasoline draw, API reported a surprise crude draw but smaller than expected gasoline draw. Cushing also saw a major drawdown and Distillates saw the biggest draw since Oct 2014. WTI and RBOB prices were marginally higher on the print.
API
Quick... look over there..
http://www.youtube.com/watch?v=FsqJFIJ5lLs
The Dow was the only major to close green today... (DD and MMM created 35 points of The Dow's 32 point gain)
The Dow has notched its 9th record close in a row - the longest streak since Jan 1987...
The US equity market and VIX have now been decoupled for 8 trading days... (closing higher with stocks for the 2nd day in a row)
Authored by Bonner & Partners' Bill Bonner, annotated by Acting-Man's Pater Tenebrarum,
To Unleash or Not to Unleash, That is the Question…
LOVINGSTON, VIRGINIA – Corporate earnings have been going down for nearly three years. They are now about 10% below the level set in the late summer of 2014. Why should stocks be so expensive?
Example of something that one should better not unleash. The probability that a win-lose proposition will develop upon meeting it seems high. It wins, because it gets to eat…
Submitted by Nick Cunningham via OilPrice.com,
Natural gas prices plunged to their lowest level since November on mild weather in the U.S., which has caused storage levels to decline at a much slower pace than expected.
Contracts for March delivery on the Nymex exchange dipped to $2.63 on February 21, down a third since December. The bearish swing has come after successive EIA reports showing a modest drawdown in gas inventory levels.
March rate hike odds dropped very marginally from before The Fed minutes (from 38% to 34%)...
But there is a great reaction in capital markets with stocks disappointed by The Fed's warnings and bonds and bullion bid...
Fed fears of dollar strength knocked the USD index lower... (despite a more hawkish tone)
And the yield curve flattened...
As it seems the market is not buying what The Fed is selling - except perhaps a loss of faith is fiscal policy.