Courtesy of Mish.
The crash in oil prices continues. Here are a couple charts to consider.
West Texas Crude
Brent Crude
West Texas Intermediate broke the $40 barrier to the downside today but is slightly above that level now.
WTI last broke $40 to the downside in 2008 but has not had a monthly close below that level dating back to 2004. Brent is near the $45 mark.
Floating Oil Carry Trade Review
In 2008, hedge funds and other big money stockpiled oil in floating ships in the $30s waiting for a rebound. This time they did so at higher prices, and at a cost of $40,000 a day.
Let’s investigate how that is working out for anyone still in the trade.
Flashback January 9, 2015: Major Oil Traders Book Tankers for Stockpiling Crude at Sea.
A continuous fall in global oil prices has prompted major oil traders to start hiring supertankers as they can benefit from stockpiling crude oil at sea. …
