Verleger says that supply is outpacing demand by 1 million barrels a day – and with the global economy not really improving, a warm winter could prove to be “devastating” for oil prices.
This jives with the outlook for crude that we looked at last Friday – there’s just too much of it right now!
I imagine that $20 oil would probably destroy commodity prices across the board. Be very careful with your long positions, and if you are enterprising/brave, there may be some great short plays to be had in the very near future.
Hat tip to our friends at The Daily Crux for this nice find.