Mainstream media is beginning to catch on to what we detailed first in February, the gasoline glut is about to bite back. As Bloomberg reports,
Oil’s retreat to a three-month low this week demonstrates that surpluses in other parts of the market, most notably refined fuels like gasoline, are holding back any lasting recovery.
Combined inventories held by industrialized nations of all forms of oil — from crude to refined products to natural gas liquids — reached a record of more than 3 billion barrels last month, data from the Paris-based International Energy Agency shows.
In the U.S., gasoline stockpiles were at the highest for the time of year since 1984 as record consumption failed to drain the glut refiners created when crude was cheap, according to the Energy Information Administration.
Sept 16 WTI has tumbled from over $51 a month ago to a $43 handle today..
Three-month lows… (pre-OPEC plunge and ramp levels)
Tracking last year's pump-and-dump of hope perfectly.
“In many ways, the bigger issue is the total inventory overhang,” Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd. in London, said by e-mail. “It is the plight of oil products — in particular the light products such as gasoline — that is slowing the pace of total stock-draws even as crude stocks fall, and of the eventual re-balancing.”
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