Getting ready to erupt

April 4, 2017 08:13 AM
Daily Energy Markets Report

While crude oil stalled at $55 a barrel as U.S. inventories stayed strong, it is probably reducing the long-term investment we will need for future demand. If you are fixated on the moment you may think we have plenty of supply. If you are a futures trader you must look to the future and realize that we are going to see a significant tightening of supply in the coming weeks and months and years. The gasoline and product tightening is the first phase and in a few weeks, it will be the oil. Imports to the United States are falling and the exports will be rising. Demand for gas and diesel are starting to heat up. Do not be surprised when the glut of oil is gone. The signs are all around.

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About the Author

Phil Flynn is a senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. Phil is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets.