Goldmans are out in force again with their scare tactics. POO's post August low support levels are currently being tested.
"Influential Wall Street trading house Goldman Sachs warned of downside risk for oil prices through spring 2016 as U.S. and European storage utilization for distillates, which include diesel, neared historic highs."
"There's talk in the market about ULSD (ultra low sulfur diesel) storage potentially reaching 'tank tops', and that's weighing on crude," said Dave Thompson of Washington-based broker Powerhouse.
http://www.reuters.com/article/2015/10/26/us-markets-oil-idUSKCN0SK02O20151026
Well if Goldmans are saying sell, I'll take that as an signal to accumulate by taking advantage of the reversal. Sold 15% of my position in DLS this morning at 80.5cents looking for a new entry.
BPT made a low with the last oil price dip of about 45cents which would now equate to a price for DLS of about 56cents. This would now have to represent the absolute floor in my opinion and I don't personally believe we will see these levels again.
I'll see what oil does over night. If WTI breaks significantly below 43.12 I'll probably sell down another 25% of my holding in the morning then it will be just wait and see how low we can get again. In some ways I'm a little excited at the prospect of the POO dropping again as it allows an opportunity to build my shareholding for the inevitable run up in the POO in 2016/2017.
Eshmun
