The market is over flooded with crude oil as traders are buying crude and putting into storage in hopes that it will be worth more at a later date. Oil tankers are being leased at sea. Storage space for crude became very hard to find at a key delivery point when the January contract expired a few weeks ago as unwanted oil flooded the market. It’s a simple supply and demand issue. Still plenty of supply and not enough demand.
Oil prices tumbled Monday to close at $37.59 a barrel on the New York Mercantile Exchange.
As the U.S. enters a corporate earnings season expected to be fraught with bad news, what could happen this week is a look at peak maybe at $29 a barrel? Sokolis actually believes that will happen next week. The scenario is Obama gets sworn into office and the fighting stops in Gaza. Earning reports come out, which we all expect to be bad but they are slightly worse. Warmer weather moves into the Northeast and Europe which today is one of the only bullish things happening in the fuel market. Next thing you know we are looking at $29 a barrel. Do you believe? Still plenty of money to be saved in your fuel purchasing when prices are low. Low prices lead to high margins for suppliers. Sokolis has the fueling solutions for you.
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