Crude & Gasoline Prices Are Plunging
Between a resurgent dollar, surprise gasoline inventory build, surging US production, and UAE leaders questioning the oil market's rebalancing, WTI and RBOB futures are tumbling...
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This has erased more than half the end-March/early-April bounce in the energy complex.
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"The glaring rise in U.S. gasoline refined product inventories, in combination with persistent lower-48 production growth, keeps us cautious on oil prices," said Chris Kettenmann, chief energy strategist at Macro Risk Advisors LLC in New York. "We would not buy the intraday dip."
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So far this is just revision from the run up it had gotten. In reality this issue is an issue of banking and financing which continues to dig gigantic pits to cover their losses in oil companies and developers by lending them even more money. Until small, unprofitable oil drillers go belly up, don't expect any big bounce. That said, a oil price collapse is not liable to happen either. Expect a continued back and forth from recent (1-2 year) highs and lows.