Ron2008

Get Out of Commodities - Barron's

"because it is based on supply/demand fundamentals"

Yea right. Gasoline inventories are at 15 year highs. Demand is dropping. So why are the prices at record highs?

There is no current shortage of oil. US inventories dropped because businesses followed a normal business practice of reducing inventory when prices go flying higher. Especially when oil futures went into backwardation last July. There is no incentive or reason for them right now for them to put inventories back where they were 2 years ago.

If OPEC dropped their quotas and prices stayed above $100, there would not be a drop more added to US inventories.