Haymaker Daily

Wall Street Misunderstood the Memo of Understanding

Hello, Haymakers:

The negativity toward all things energy-related hit a crescendo at the end of the second quarter. Incredibly, despite an extremely precarious ceasefire, West Texas Intermediate crude, the main U.S. oil benchmark, was trading $68 and change on June 30th (more to follow on that date below). According to the Dallas Fed, that is barely above the break-even point for producers in the prolific Permian Basin. And, as we've often noted, oil inventories have been plunging along with oil prices, a most bizarre occurrence.