Thursday, January 4, 2007
More Energy Bearishness
Crude inventories fell 1.3 mln barrels vs. consensus estimate of 2 mln. Gasoline inventories rose 5.68 mln vs. consensus estimate of 1.5MM. Distillates rose 1.97 mln vs. consensus estimate of 850,000. Wow. Notable breakdown names on the energy stock list: OIS, ACI, VLO, SII, RRC, HLX, PCZ, GMRK, ESV, GSX, AEZ, CVX. What's been interesting is that call options volume in many of the chains on these oil stocks are actually heavier than the put side as folks bet that this long term support area in crude will hold. Good luck to those folks, but it's been a bad play so far today as crude has broken through $56. I'm almost starting to wonder if the energy markets are starting to price in a slower economy later this year.