Oil poised for another dramatic drop?
I've been watching oil prices and futures, and here is what I see.
Oil traders have been hoarding oil because the future price of it is higher than what they can get for it today ("contango"). However, those higher futures are about to expire, and the futures following the high ones are lower, so some of that oil is going to come to market. And of course there are all of those tankers floating around out on the ocean storing oil, and cushing, ok (oil trading hub) is literally afloat with oil. Since gas demand is down the US has steadily been building an inventory of oil, and I suspect this will continue until the US economy picks back up. The oil production cuts in the middle east have done nothing.
So.... are we about to see oil take a dramatic price drop?