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[Cirrus]

"It's not just geo-political tensions that are supporting the market. It is also the fear of tightening supply. The International Energy Agency is warning that world wide supply is tightening. In its most recent report they say that oil stockpiles in OECD countries slipped to 53.5 days to 54.4 days in August a time when supply normally increases." This is clip from an oil article about the tensions between Turkey and Norther Iraq. Not many are talking about the global supply deficit we will see throughout much of Q4 and Q1. You have to ask yourself why we have this deficit giving record drilling and an ever uptrending crude market. Look at the history of oil and you'll see in past oil bulls it only takes a year or slightly more to bring supply and demand in balance since oil has been a major global commodity (going back almost 100 years). Doesn't logic make anyone wonder why this is? I still assert the world reached peak CL production mid to late last year from the data I've seen. We are now at the plateu stage which should see CL production/supply remain about flat for a little while. The problem is worldwide demand is growing at around 2% minimum. The bottom line is that even if US demand begins to slightly decline CL prices will remain high and perhaps go higher. So many of the E&P stocks are priced for perhaps sub $50 CL over the LT. This won't last long. I'm long the stocks and will add on dips. This is an investment for me and I have some reserves to add on the next dip when it comes. I think this is like buying semiconducter stocks in the early to mid 90s.