gasoline (5)


China Plans To Ban Sales Of Fossil Fuel Cars Entirely


China’s big electric vehicle push is about to get even bigger: The country is planning to end the sale of fossil fuel-powered vehicles entirely, with regulators working currently on a timetable of when the ban will ultimately take effect, according to Bloomberg.

China is the world’s largest auto market, with 28.03 million vehicles sold last year, a boost in demand of 13.7 percent vs. 2015 sales numbers. The nation has already done a lot to incentivize manufacturers to develop and sell new EVs, including allowing foreign automakers to create a third joint venture with local automakers (a standard requirement for doing business in the country for auto OEMs) so long as it’s dedicated to the creation of EVs exclusively.

The government has also created a number of incentive programs for OEMs, including subsidies. This will add to its positive efforts to drive more EV sales in China with the ultimate negative condition on the other side – at some point, automakers just won’t be able to do b

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Crude oil has a tendency to bottom in mid-February and then rally through July with the bulk of the seasonal move ending in late April or early May. It is that early February low that can give traders an edge by buying ahead of a seasonally strong period. Going long crude oil’s July contract on or about February 14 and holding for approximately 60 days has been a profitable trade 27 times in 33 years, including the last three years straight, for an 81.8% win ratio with a cumulative profit of $108,660 (based upon trading a single crude oil futures contract excluding commissions and taxes).


Crude oil’s seasonal tendency to move higher in this time period is partly due to continuing demand for heating oil and diesel fuel in the northern states and partly due to the shutdown of refinery operations in order to switch production facilities from producing heating oil to reformulated unleaded gasoline in anticipation of heavy demand for the upcoming summer driving season. This has refiners b

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Energy Contagion - The Big Unknown

20141208_energy2_0.jpg?width=400Indeed, I've read much concern over this area as oil collapsed so it does merit a warning.  From ZeroHedge:

The S&P 500 Energy sector stocks are down over 12% year-to-date, tumbling over 3% today to fresh 20-month lows. The spread (or risk) of high-yield energy credits surged again today, breaking above 850bps for the first time... The overall high-yield credit market is being dragged wider by this contagion as hedgers try to contain the collapse that is possible. For now, the S&P 500 remains entirely ignorant of the fact that over a third of its CapEx was expected to come from this crushed sector...

According to DB

US private investment spending is usually ~15% of US GDP or $2.8trn now. This investment consists of $1.6trn spent annually on equipment and software, $700bn on non-residential construction and a bit over $500bn on residential. Equipment and software is 35% technology and communications, 25-30% is industrial equipment for energy, utilities and agriculture, 15% is transpor

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Rails, Keystone And Cheap Gas

1291117?profile=RESIZE_320x320Rails are having a difficult time nowadays.  You can point a finger at lower gasoline prices, making shipment by tanker and truck more affordable but I believe you can also point a finger at the GOP and their desire to pass the Kochstone Keystone XL pipeline proposal.

It is what it is; bearish. 

Although CP shown here (click chart to enlarge) has not 'broken down' out of a bearish descending triangle, the lower swing high and high volume selling is evident.

I am already short but if it comes back to test upper resistance, you too can get short or purchase puts.  Risk and target shown.  Long live cheap gas.

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Filling up at the pump yesterday, paying $3.79 for low grade made me wonder.  Aren't you supposed to be kissed before you get screwed over?  Captain Obvious over the last few years is the disconnect between gasoline demand/usage in the U.S. vs. price when it comes to the stinky stuff and that price chart certainly looks like a large, bull flag which should make your head spin at the potential increase ahead unless something changes.  Surely the gentleman next to me would have to sell a body part or small child to fill up his enormous SUV.  Fool with that huge tank but he thinks he looks slick.  The powers that be decided they wanted us to become accustomed to $3/gal and it seems that we have unfortunately but I have to keep saying it, the demand just does not justify the price of oil without a supply disruption or military crisis in the Middle East.  As much as I hate to say it, the Prius is beginning to look good.  Maybe a scooter?  It worked well for Larry Crowne.  Someone save me.

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