Facts and a little Opinion

“Commodities Oversold:  Oil, gold, silver, platinum, and orange juice are the most oversold, while wheat, corn, coffee and copper aren’t far behind.”  Bespoke  Also, energy and materials have corrected much more than other groups:  Bespoke

Crude oil inventories:  The situation does not looks as bad when products are included.  Also, the Seaway pipeline will be taking from (instead of adding to) inventories as it is refilled on the reversal.  Bespoke

Meanwhile some irony, “U.S. President Barack Obama will seek support to tap emergency oil reserves from other Group of Eight leaders at a summit this weekend…Japanese Prime Minister Yoshihiko Noda was expected to support the call…newly-elected Socialist President Francois Hollande was also prepared to go along with efforts to tap government-held stockpiles…”  From Reuters with a hat tip stockmonger at Investor Village.

“I’m thinking that the Chinese are on their way to backing their Yuan with part-gold, thus making the Yuan the most wanted currency on earth, and in due time the world’s new reserve currency.”  Richard Russell

Baytex Energy for Oil Income written by me at Seeking Alpha.