Oil drops on falling gasoline futures – Apr. 7, 2005
“Crude inventories are not tight enough to justify current prices,” said J.P. Morgan bank in a report.
I wonder at what point the markets will pay attention to the fact that the Strategic Petroleum Reserve is over 688 million barrels and should be full by August. When that happens, the 100,000 to 300,000 barrels a day (depending who you ask) that are being diverted into it will be going to refineries instead. A marginal difference, sure, but prices are set at the margin.