 Great day for crude numbers crude cool getting crude, right? We sure are so we got EIA inventories at 10 30 a.m Yeah, quite the move on crude man. It's still continuing you back it up to just yesterday We were at 40 so yesterday at 3 o'clock Let alone you back it up even further in terms of Monday afternoon. We were down below 49 50 yesterday at 3 o'clock we're at 49 73 you're up more than Almost $2 right now. You were up there at about $2 exactly 5161 the price of crude I'm going to jump in here and see what kind of options we have prior to that 10 30 number So 5161 we're looking at the March contract if you're looking at 11 a.m. You could have 5175 is gonna line up I'm just gonna jump to the noons to see where they line up so the noons We're gonna have to go almost 40 cents away no matter which side you choose with either 52 or 51 50 And then the 230's 51 is gonna be our option. So it looks like the only real option where you're not you're very close to where it's trading That's 11 a.m. Here's your bullish spread from 51 75 to 53 25. You're about 14 pennies out of the money That one's costing you Excuse me, you're buying it that one's costing you $15 because you're good 14 pennies out of the money Be aware you have an 8-tick bit offer spread. That's a little big for these oil contracts. It is Usually they're pretty tight and you're gonna see the same eight or nine ticks spread on the bearish side as well There's your bearish trade from 51 75 to 50 25. You'd be selling it your risk in 27 you have a good 15 cents of intrinsic value in there But boy when you're paying a good 7 cents bid offer here and a good 8 cents here That's a 15 tick bid offer spread on both sides. You're having to pay To set that up and it's only a hundred and fifty dollar pie is in a buck 50 and you're paying 15 cents Just in bid offer spread on both sides. That's a big spread, but we'll see what happens and I get the whisper number up here So let's take a look at this Here we go. So what what the market is looking for? Well, the survey number Is three a build of 3.2 million barrels, I believe the whisper number is 4.2 million I just put in a build of 5.2 million perfect good No, so we'll see where this baby shakes out on this is awesome bit Mr. Bill Okay, so last night. Oh, there's a six million build last night. Okay in the API. Yeah, and Then a small build and thanks mr. Bill and gasoline We'll see where this goes. I mean the bottom line is that there's there's no doubt that what we've had that thus far folks Is that oil has held? If I get this active, let me see I'll do the generic contract because you can see it a little bit better this is this was the bottom of the consolidation that it's been in and We put this back and you're gonna see that this is this is an important part of the consolidation is 50 60 You know, we got below it But you know and I are above it again So the bottom line is that we'll see what it can hold because when this doesn't hold you're talking about a 42 Print an oil 47 to 42 and just to throw up a headline on my screen up there So you have OPEC slashing oil demand outlook for 2020 as the coronavirus outbreak stifles China So pretty remarkable numbers here OPEC downwardly revising its outlook for global oil demand growth To 0.99 million barrels per day in 2020. That's down 0.23 million barrel days so it was sitting at about a million and No, excuse me. It was sitting at about 1.23 million. Yeah, and they brought it down to a million Just that's that's almost a 20% reduction from the previous month's estimate And what this is gonna hit to though is that you might have the OPEC and allied non OPEC producers having to cut now with that Big of a dramatic so it's almost like in the US right where we get an economic slowdown They say well, that's okay because the feds gonna come in they're gonna cut in the market actually trades higher The OPEC slowdown is so much that you might force those types of cuts in production Yes, the market might be responding to to trade higher almost inverse right bad bad news for the market They say that's okay OPEC's gonna cut Right, but that could be what's kind of given it a little bit of a floor here from 4950 to 5160 that area Hey, exactly, and it's gonna depend folks and on how much our Drillers just keep drilling drilling drilling because the the understanding in the business folks is that the large Integrated companies meaning the Exxon show runs of the world. They've taken over more of the shale and as that has happened Well, those large integrated companies, you know are not like the the middle companies. They just keep going I mean they're gonna just pump pump pump Because overall that you know is a good piece of it But it's not like the medium companies like if you and I were in the oil business would have to stop I mean because you go broke they they're not gonna go broke They just gonna you know they're gonna go through that cycle. They're gonna go down They're gonna go up and the real question is that you know, how much are they gonna do so oil out here? What do we just pull off here? Whoa, look at this. I should have put it in a lot higher a build you should have a build of 7.6 million barrels folks that is one monster build You know, so Let's see you get gas see you also had gas inventories falling 95,000 barrels. Yeah Big big numbers here, man We got plenty of oil. There's no there's no doubt about that and to jump over to the price slight dip 5149 we were just at 111 60 and change when we came in so you're talking about only 10 cents to the downside With crude reacting so far. Yeah, and it's early in the day But bottom line is that that is one monster build. Hey, so listen to this folks. You got Way to see this Tommy this I'm surprised that the S&P's aren't like a 45 bucks right now so you get Powell, you know getting questioned right now in the Senate and So listen to this quote. This is pretty amazing. So This was a 1020 this morning, you know, Paul low rates are not really a choice anymore And I don't know what that means that part of it means, but here's the next one He says it'll more than he said it'll be more than likely more. It is it He says it'll be more likely that thank you it'll be more likely that the Fed needs to return to forward guidance and large-scale asset purchases of longer-term securities that says those tools will be used aggressively if needed You know, we've talked about, you know, that the Fed and the Fed put for years But this is this is a Fed put in an extraordinary way. There's no doubt. It is what it is I'm not gonna have to love to hear that for sure. Oh my god You know, it what happens folks is that when you when you get the aspect of the Fed buying, you know Shock-term bonds, which they've been buying for a long period of time and in long-term bonds But when you're talking about asset purchases on a longer-term basis That is where they really do have a put under the marketplace because what ends up happening is that the way the Fed is Instruction is that they have much more control although I've had much more control over the shock term versus the longer term Bottom line you buy, you know, you're piling into longer-term assets. Guess what? It's gonna be both ways. Yeah, so yeah Oh My god, and and the no reaction means that the market maybe already knew that and expected it, right? Yes, yeah. Yeah. Yeah, no doubt and that's what we've been seeing on a continual basis on the way up And I suspect the market's gonna push them as far as they can push them, right? Yes. Why not? You know