Friday, January 27, 2017

Too Much Oil, Again

Are we heading for another oil glut? America's refiners just stored away more gasoline in the last month than in nearly any other in a quarter century, according to the U.S. Energy Information Administration.

Storage levels are now nearly back to a record high set a year ago, while at the same time, demand for gasoline is approaching a 15-year low. That means the amount of gasoline in storage can cover demand for 31 days, the most in 22 years,

Before a slight rebound today, gasoline futures lost 3.3 percent Wednesday after the U.S. Energy Information Administration revealed those figures. The market settled Wednesday at a six-week low and off 9.4 percent - less than a month after it hit a one-year high.

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