Storage tanks holding crude oil continue to burst at the seams, following another big increase in supplies, according to the government's latest Weekly Petroleum Inventory report.
Crude stocks were up 7.2 million barrels, more than twice the 2.8 million hike extended, keeping the inventory level above five-year highs. When demand is figured in, the number of days supply is even more burdensome.
Anyone with a storage tank has plenty of incentive to fill them to the brim, with prices for August delivery nearly $10 a barrel higher than the nearby. Stocks at the delivery point are in Oklahoma are also quite high, which could set up another weak expiration to the nearby March contract when it stops trading Feb. 24. The previous January and February contracts both plunged into their expiration, testing the $32 level.
To read Bryce Knorr's complete weekly energy review, click HERE.
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