MBCC TH 2nd February'23 - "Did Powell set up a trap? Energy Oil showing BUILDS, bulls losing their bullish justification?"

Remember how the Oil Bulls kept saying all of 2H’22 that inventories were super low and “running out”. Sure as we said they were low, but it was never about where they came from, but WHERE THEY WERE GOING! As you can see, products are NOW BUILDING, it is the rate of change that is important, not the levels. So the only two things bulls hold onto was 1) Chinese demand magically returning 2 mbpd of Oil demand and 2) Russian product bans means the world will have a product shortage.

It’s easy to call those 2 bullish points as its reading the exact headline but China and Russia and physical players are way smarter than the average Oil trader, certainly the retail ones. It is all a physical game, and physical leads financial.

Well we discuss each of these in our note to our paid subscribers, and why we have been saying this since NOVEMBER’22!

Also those who are calling for market to break out, blah blah, it all depends which stocks you are long of, if you believe it, but it is not coming from Commodities. And we tell you why!

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