The Wall Street Journal’s Liam Denning lays out America’s supply glut.
“Commercial crude-oil stocks in the U.S. stand at their highest level in at least eight decades. Right now, it is very profitable to take barrels, store them, and sell them forward.”
“Before the spigot of oil gets shut off, the spigot of capital will have to dry up. Oil at $50 a barrel clearly wasn’t low enough to do that. We will likely soon learn whether sub-$40 prices will do the trick.”