U.S. crude oil production may be falling faster than many had thought and we are seeing signs of that in Cushing, Okla. Cushing is the Nymex delivery point and a storage facility that if you listened to the Ultra Bears was supposed to be overflowing with oil. Instead the opposite is happening as supply there have fallen five out of the last seven weeks and is slated to fall once again.
Crude futures fell about 3 percent on Friday after Wall Street's most influential voice in oil trading, Goldman Sachs, slashed its price outlook through next year, citing oversupply and concerns over China's economy.
Oil prices fall as U.S. oil supply rises to a record for as long as the Energy Information Administration has been keeping records. You have to go back almost 70 years to find a time when energy supplies were this high at this time of year.
It is obvious that the simmering tensions in the Strait of Hormuz are starting to boil over. Yesterday a report that a US ship fired on a boat just outside of the Strait, sent Brent and WTI up to a new high for the session.