Monday, August 24, 2015

Crude oil could go up from here

For having been overtly and rather relentlessly ... and very publically ... bearish, we are this morning turning bullish of crude oil and we are turning so because the term structure shifts mandate that we do so.

We do not make this statement lightly for this is a material shift in our view of the energy market… a very material shift.

Amidst the carnage of the global stock markets this morning and even in light of the sustained bear market in crude oil, the narrowing of the contangos in Brent and WTI brings us to become a buyer of crude as noted at length above. We’ll buy a unit of crude oil, split between Brent and WTI, upon receipt of this commentary. We shall, for the moment, give these prices the latitude to move 3% against us, hoping that we can tighten that up when we return Monday.


via http://www.zerohedge.com/news/2015-08-23/crude-snaps-below-40-gartman-stopped-out-oil-long