Oil Getting Kicked When Down

[biglentil]

Oil lost 1.91 today or about 5 percent. Grains seem to be weathering the general downward pressure in commodities rather well, but whats next?

[BTO_farmalll]

Gas Prices?????


I Know, I Know, Wishful Thinking!!!!!

[hobbyfrmr]

Hold on to your hat, grains will follow.

oil vs. corn chart
http://www.agmrc.org/media/cms/wisnerfigure1_CFBA05522F694.jpg

Dont shoot the messenger

[errolanderson]

The U.S. cannot handle the strength of their own dollar. This has crushed their exports and manufacturing and the American is edging closer to a 2016 recession.

The U.S. dollar may begin to fail should the Fed actually hike rates. Their economy is now slowing. Much like buy the rumour and sell the fact. This would be supportive to crude oil, the loonie, wheat prices etc.

[TOM4CWB]

Basically the largest US stocks of Crude in the last 85 years... vs Consumption [Since 1930] they are running out of storage... going back to August lows... Soy gained as did corn... because the EPA said not enough renewables were used in the fuel mix.

Climate Change has a good side... mandates for ethanol and Biodiesel.

[sumdumguy]

The need for biofuels = zero as in goose egg. Out with the ethanol, reduces mileage, necessary NOT.

[helmsdale]

I see much more kicking in the near and medium term. So long as OPEC fights to maintain market share, there is little to no upside.

[biglentil]

We like ethanol keeps wheat price up! Oil on the otherhand is a buy buy buy. The current environment is setting up a future price spike like non other. The low hanging fruit oil patches are already dry. Shale oil production drops like 3 percent per month after a hole is poked. Oil sands requires one barrel to recover two barrels. Fracking isn't a game changer its a squeaze of the oil slurpy
cup. The only thing thats cheap n easy to produce is paper money.