I've got to give a lot of credit to Jim Puplava, one of the peak-oil, energy permabulls.
The energy segment in this week's news hour (click here or here, beginning 34 minutes in for about 10 minutes) features an interview with a genuine oil expert who discusses the current inventory situation (which is pretty dismal for crude oil and its products [gasoline, diesel, distallates]). He said that in terms of days of use, that crude oil is in the 99th percentile. This means that historically 99 percent of the time there has been less crude oil inventory that there is currently. It means that demand in the USA has fallen hard (there was one data point that indicated it was down 20% year over year for at least one week recently). Pretty darn bearish for oil.
I give Puplava a lot of credit for having a guy on whose short term call is so much the opposite of Puplava's long time outlook. Gives Puplava a lot of credibility, in my view.
Puplava's entire program this week had zero bullish material on energy (as best I can tell) while he was touting gold all the way thru.
I was thinking about reentering with oil back down into the 60s, but I think I'll just stand aside as long as the inventory is building.
MontyHigh, www.worldofwallstreet.us
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