That’s right. There’s more crude in inventory than last year, 315 million barrels versus 285.7 million barrels at the same week last year. Yes crude prices are $22 barrel higher – roughly a third higher – than last years already high prices. The argument that this is all demand created is specious given that US demand for crude is involuntarily cut by at least 5% for the next several weeks at least. Certainly if we were talking about December futures I could see some sort of “pent up demand” argument though frankly by December there will be lots of “pent up supply” to deal with it and spot prices and October futures are out of control. Bubble. Listen for that sound. POP!
This Week In Petroleum Crude Oil Section