You have to love a company with the ticker MXC, no its not Kenny, Vic, and Guy LeDouche running the company. Turns out Mexco Energy Corp. (AMEX:MXC) hit black gold in Texas after drilling a well to a depth of almost 6,680 feet. Mexco Energy Corporation acted as operator of a discovery well drilled to a depth of approximately 6,680 feet in the Cherry Canyon producing interval in Loving County, Texas. This well produced from a 45 acre drilling and spacing unit on a 24/64" choke flow test on May 16, 2008 at a rate of 3,450,000 cubic feet of gas per day with a flowing tubing pressure ...

… and that begs the question of where to next? Crude cannot sustain this advance indefinitely. With the month only 9 days old — yes, some like it hot, some like it cold, some like it in the barrel 9 days old — WTI light sweet is up a stupendous 11% month to date! Thus, the rise has become quite parabolic and the danger of a short and sharp correction should be a part of every trader’s thinking. (See our crude trading range upgrade from mid-April a few posts below.)

Lesson learned from this recent leg up? 87 mln is the number to remember. 87 million is about DAILY world consumption of barrels of black gold. 87 MILLION 42-gallon barrels of crude on the wall.. you take one down, pass it around…

Pundits have been puzzled by how …