Oil down to $42 and change, retracing back to about the 61.8 from the February lows. Also appears to be a key support level around $42.
Where does it go from here? My guess is down, after a weak bounce to maybe $45. Just got back from a 4,000 mile road trip to the Midwest and back. Gas was cheap all the way. No demand, so methinks the economy is sputtering. Backed up by this article.
http://www.reuters.com/article/us-us...-idUSKCN1040G1
Quote:
But mixing more winter gasoline now threatens to worsen the glut later, a risk willingly taken by an industry left with few other choices.
Big imports and a massive overhang in gasoline inventories have turned the market on its head and pushed gasoline stockpiles to the highest levels for this time of the year in a quarter of a century, even as demand from U.S. motorists during the busy summer is near a record.
Independent U.S. refiners are expected to post another quarter of weak earnings en route to possibly the worst year since the shale boom began in 2011.
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