- A New Look at the ‘New Poor’
- Six Pack: Beer Buzz of the Week
- Greek Exit Could Trigger 50% Fall in Euro Stocks: Analyst
- Under Pressure, FHA Skews to Wealthier Home Buyers
- Big Stock Upside for Hudson City Deal: Analyst
- 5 High-Yield Stocks Ready to Boost Dividends
- Yoshikami: Four Things You Need to Know About Gold Now
- Steinbock: The Euro Zone Endgame Begins
- Option Bulls Take Another Shot on Idenix
- Citigroup Lost $20 Million on Facebook IPO Trades
- Sticker Shock: What College Is Likely to Cost in 18 Years
- JPMorgan to Shake Up Risk Team After Big Loss: Report
- Icahn Raises Stake in Chesapeake, Wants Board Seats
- Marc Faber: Chance of Global Recession Is Now 100%
- Week Ahead: Europe Has Wall Street Bull on Short Leash
- What Happened to Stocks? Most Unloved in 50 Years
- Cool Jobs: From Gold Stacker to Bed Tester
- Many Greeks Moved Their Money Abroad Long Ago
MOST SHARED
- Marc Faber: 100% Chance of Global Recession
- Zero China Growth Is ‘Probable’: Gordon Chang
- Time for Flash Sales to Adapt or Die
- Citigroup Lost $20 Million on Facebook IPO Trades
- 5 Spots Where the Dollar Buys a Great Vacation
- Facebook: The Song — Yes, We're Serious
- How to Trade on the Jobs Report
- China Growth Risks Signal Need for Fiscal Action
- What College Tuition Will Look Like in 18 Years
Shorting Oil The Way To Go?
Text Size 
CNBC Personal Finance Correspondent
 |
CNBC.com |
] and Oil Service HOLDRs [OIH
Loading...
()
] and he's added to those shorts as this market sells off this morning. A smart move as XLE was down $2 at the lows and OIH fell $6 earlier today after the Energy Department surprised the market by reporting crude supplies rose 800,000 barrels when the consensus estimate was for a decline of 900,000 to 1.7 million barrels. The fact that distillate supplies also increased by nearly 1 million barrels more than expected is also seen as bearish for prices
Energy analyst Andy Lipow points out that "this week's refinery distillate production was an all time record surpassing the previous high produced the week ending July 1, 2005 which was prior to Hurricanes Katrina and Rita. Distillate inventories have increased nearly 14 million barrels or 13% since May 2, 2008." And he expects those increases to continue.
Now traders are just waiting for the Fed. No change in interest rates is expected, but strong commentary about inflation, rather than recession, could boost the dollar and pressure energy prices. Watch the $132-mark, that's a key support level for crude oil, which has traded between $131 and $139 a barrel for the past two weeks. With oil already down over $4 with just 2 hours left in the session, floor trader Anthony Grisanti says "a recovery is unlikely."
Depending on what the Fed says, the sell-off could accelerate this afternoon.
Questions? Comments? energysource@cnbc.com
- The Nasdaq has suffered the most from the EU crisis showing there's risk in the usual tech stocks.
- Targeting more Millennials is just one of the items brewing for consumers in the world of spirits.
- It seems many people may need a reminder of how NOT to act on a plane. Here are a few tips.
- Here are some very unusual roadside stops along American highways that might peek your interest.
- How three generations of Americans are dealing with the finances of retirement.
Data is a real-time snapshot *Data is delayed at least 15 minutes
