These two pictures tell why crude oil will soon take out the all time high in the $78 range and move higher from there over the next several months:
The above charts are from the IEA which doesn't even have a complete grasp on world oil demand because of unreliable data from emerging nations, especially China.
Today, we will get another batch of U.S. energy data. If you're keeping track, a Reuters survey of analysts shows an expected 100,000 barrels rise in distillate stocks, and a 300,000 barrels increase in gasoline when the figures are released at today at 10:30 ET.
Talking about the over abundance of paper barrels versus real barrels in Cushing, OK makes for good fun, along with how much is sloshing around in Cushing these days, but the real deal is in the demand for energy globally, and the output. Throw in stress in downstream refining, and it's a recipe for little relief at the pump. Prices are supposed to come down as summer draws to a close, but I can just hear it now - they didn't make enough home heating oil.
It must be so nice to be an oil company. Can I start one? Oil 2.0? Finished products are now fetching $30/bbl over crude vs around $10 last year. That's the definition for 'minting money.'