Crude oil prices continue to struggle to the upside as the first snapshot of fundamentals this week--the API inventory report--was mostly bearish. The more widely followed oil inventory report is due out at 10:30 a.m. EST this morning which is expected to show an across the board build in the complex.
Worries about the growing crude oil glut in the United States are reaching a fever pitch as the International Energy Agency is warning they will continue to build inventory and that prices could once again fall.
Are we seeing signs that oil inventories might be topping out? Oil inventories have been rising at a record pace but yesterday we saw a withdrawal in the American Petroleum Institute (API) report which could be a sign that supply growth may be topping out.
Crude oil's rapid decline since August of last year has been dramatic. Those claiming that oil will continue to fall from here and remain low for evermore, however, are flying in the face of both history and common sense.
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.