The great divide between the bulls and the bears in crude oil is growing as it seems that major players are seeing diametrically opposed views of our oil price future. The bears seem to suggest that the recent increase in price was nothing but a short squeeze and nothing has really changed on the fundamentals of oil glut. The bulls on the other hand point to a historic cut back in capital spending and supply cuts that may have ramifications on the supply side for decades to come.
A deal among some OPEC producers and Russia to freeze production is perhaps "meaningless" as Saudi Arabia is the only country with the ability to increase output, a senior executive from the International Energy Agency said on Wednesday.
Americans are guzzling gasoline like crazy. Crude oil prices spiked as gasoline demand spiked after the Energy Information Administration (EIA) reported that gasoline demand is running at 9.3 million barrels a day, over 7% higher than we were a year ago. That led to a 4.5-million-barrel drop in gasoline supply which was the biggest weekly drawdown in more than two years.