Crude Oil Inventories (thousands of barrels) w/Oil Prices as of yesterday close (black line):
Assbackward Economics:
Price is down. Demand is down. Supply is at an all time high. This can only mean one thing - demand is the driver in this equation, because lower prices don't result in lower demand:
The perils of a fixed cost industry in over-supply. The crude keeps flowing just as long as all variable costs are met i.e. to forestall bankruptcy as long as possible.
That output gap visualized above is merely a preview of the supply/demand imbalance that has been artificially generated by Globalization.
