John Pitera's Market Laboratory Message Board

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Strategies & Market Trends : John Pitera's Market Laboratory

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To: benwood who wrote (17486)	12/23/2015 9:16:16 AM
From: John Pitera	3 Recommendations Recommended By roguedolphin The Ox toccodolce Read Replies (1) of 33421

Brent Crude is higher than WTIC for the very first time since The Middle of 2010....... that is a development worth keeping an eye on........ Brent was at a $3 discount to WTIC for 15 or 20 years it seems.... prior to 2010...... Jan contract expired on Monday and so Crude was up a buck simply on the Roll to Feb.... The Saudi's are saying that crude will not be back to $80 until 2040.... there have been several of these really crazy 25 year price calls on CRUDE recently....... that is indicative of the mass psychology of a bigger multi year bottom forming. This is the of the year and markets are thin but for people such as yourself, Bob Furman, The OX, AJ and others.... we have to be looking to see if we are actually getting a further along in a bottoming process...... we will have to wait until Jan and see what the currencies , the high yield credit markets and other major global asset classes are telling us.... The ramp up in 3 month USD LIBOR rates is now coming into discussion and is being referred to as the blow out in the TED spread.......... The big increase in the spread between US TBills and the EURO dollar interest rates...... when that happens it is typically due to fears of illiquidity and increased risk in some part of the credit markets. Right now part of it is attributed to the lack of US TBills for purchase due to FED mechanical operations....... we shall see. The price of crude is ultimately a function of the value of currencies as.......... are all prices.....,none of the energy company know what the energy complex will be selling for in ten years as it totally depends on where the currencies are .. and in the long term currency relationships are driven by global macro interest rate differentials...... the returns on investment in countries..... in no small part due to the tax and investment policies of the major countries.... and the balance of trade and similar macro considerations. John Hi Ben, Love Actually is a modern classic....... no doubt.......

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