Citi VelocityShares 3x Long Crude Oil S&P ETN (UWT)

[Sgreg]

Many fallacies being reported about oil. 1 there is a glut. That is false. Inventory levels are the same right now as they were last December. Year over year inventory levels at this point are about equal so all of this production this year has been getting consumed.

#2 demand is decreasing. That is false. Demand is not decreasing. Demand growth next year is expected to fall but still be very robust. A decline in demand and a decline in demand growth are 2 very different things.

#3 builds in inventories over the last many weeks proves there is a glut. False because again look at #1 and inventories are supposed to build this time of year. This is build season.

OPEC is going to cut, also next year a new IMO standard goes into effect taking 1.5 million bpd off the market. Demand will remain robust. The reality is there is more of a supply shortage possibility than a supply glut next year. The fat cats started shorting and told the media a bunch of nonsense as to why prices are falling so hard. I'm looking at buying around $50 wti as I think that is where the fat cats want it before going long again and then telling the media about supply shortages lol.