“Davidson” submits:
Here is the US Oil Situation from EIA. While we have an inventory build, it appears to have been purposeful to a level at ~22% of weekly refinery needs. There have been no discernable inflection points to mark the onset of fears of an ‘Oil Glut’ beginning July 2014 or mark the turn at Jan-Feb 2016 lows or the new expectation recently voiced that some are worried about not having enough oil in response to fires in Canada, pipeline damage globally or other outages. The lack of fundamental change is why I continue to believe that the swings we have seen the past 2yrs are likely to have been a ‘mass hysteria’ by Momentum Investors.
US production is down by just over 0.8mil BBL/Day from July 2015 9.604mil BBL/Day. But, US has raised imports to continue to build inventory for refinery operations.
In my opinion, it is just a matter of waiting for market psychology to turn in your favor.
