Charts from This Week in Petroleum illustrate why some traders don’t think we’ll see crude prices much above the low to mid 40’s yet… Crude stocks continue to rise:
To relate stock levels to demand, we look at days supply… For crude, the picture might be getting worse at a decelerating rate (is that the best we can say for crude?), that is, perhaps we are entering a stabilization phase thanks to an increasing demand/decreasing supply picture:
Bottom pickers, however, might point to gasoline which is showing sharp seasonal declines… although still well above the 5 year high:
Days supply for gasoline is already at last year’s levels:
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