I don’t want to hear about some surprise, “less than expected” build in crude today. How anyone had enough sense to try to fool my teeming millions into thinking that America would just keep piling on is sad. Of course the new production of U.S. crude to over 9 million barrels per day made us punch drunk. We overpaid high school drop outs MBA money to sit in oil fields to watch for leaks.
If anyone was paying attention to the crude oil market yesterday, you might have noticed that the market is finding some stability. We tumbled and lost a $1, but finished with the Bulls and reversed to nearly fifty cents higher.
This week the three main forecasting agencies (EIA, IEA and OPEC) all released their forecasts for 2015. All three reports were relatively consistent with each other in that they all indicated that oil production is unprofitable and already starting to be cut and will likely continue to be cut as long as prices remain depressed.