Whenever we get these new stimulus plans, and new money being thrown at problems elsewhere, it induces the speculators to take a look at another asset class.
That asset class is now oil. Oil is not staying at $40.
OPEC plans on more production cuts, and we are sucking supply off the market everyday in the Strategic Petroleum Reserve.
And we had Fast Money last night, telling us that oil can't rally, because there are 32 million barrels of oil sitting in storage in Cushing.
Then let them short it.
Cushing is always busy when oil is in contango.
But has anyone looked at the price you've been paying at the pump lately, and the widening of the crack spreads?
Doesn't anybody think that these refiners can trade around their storage? If Wall Street thinks this is free money, are they so smart, that the refiners haven't discovered it?
Which is why you are paying more for gas at the pump.
And which is why, $40 is the new floor for oil.
Now Wall Street needs to rally, and when you have strength in oil, it pulls up the stocks.
And this time, we will get a rotation in the oil numbers. Look at Petrobras (PBR 30.23) and Devon Energy (DVN 59.35).
These are the "storage containers" below ground. You have to drill and explore for it, but when crude goes up, so does their value.
And crude is heading higher, and so should these.