Deflector Shields Up!

By Tim Knight

[biiwii comment: How on earth may I ask did Gartman attain such stature?  Secret pics of CNBC execs having group relations with farm animals maybe?  The authority given him, per his disastrous/profitable calls ratio, implies he’s got some sort of secret sauce because they just keep going back to his authoritativeness]

I saw this article this morning, and this bit really irked me:

0427-wrong

It isn’t the fact he’s been stone cold wrong. Hell, I’ve been wrong countless times. But I don’t make a point of claiming I had a position that I didn’t really have. (To say nothing of trying to deflect one’s foibles by attempting to positively associate oneself with “Lord John Maynard Keynes” whom, incidentally, was a pretty dreadful trader too).

Anyway, what’s stated above is “We had been, on balance and really quite openly, bearish of crude for the past several years, erring always to sell crude’s rallies rather than to buy crude’s weakness’.

This took only 12 seconds of research on my part…….

Continue reading Deflector Shields Up!

Don’t Forget Oil Demand Elasticity!

By Michael Ashton

The big story of the weekend was that a meeting of OPEC and non-OPEC producers, at which an agreement was supposed to be signed to freeze oil production at recent levels, ended without an agreement being signed. This was not an enormous surprise, since Iran didn’t even attend the conference and the Saudis had said they wouldn’t sign unless Iran agreed, but oil prices initially took a significant hit before recovering some later in the day.

The economic significance of the lack of agreement is fairly small; most producers are producing near their maximum output, except for important non-attendees like the United States and Iran. (The Saudis claim to be able to put 1mm barrels per day online in short order, too).  But the psychological significance was thought to be important.

Continue reading Don’t Forget Oil Demand Elasticity!