The Idiocracy Doesn't Believe In Reality. The Feeling Is Mutual.

The reason why the oil glut hasn't cleared is because oil is not cheap enough. It's a new concept called supply and demand. And "finding" the spot market every month is an accounting entry at Cushing...

This is the U.S. surplus of oil (production + imports - demand) in thousands of barrels per day (w/oil price):

Data from: https://www.eia.gov/petroleum/weekly/

U.S. Oil storage (inverted) with oil price:

It's abundantly clear that even the serial bottom calling "experts" in the oil industry have no clue how the price of oil is determined. Hard to believe, but it's actually determined by supply and demand. And supply (both inventory and production) has NEVER been greater. So until Cushing draws down significantly, the price of oil will not be set by short-covering in the futures market and non-stop CNBS bullshit...

The clearinghouse for the U.S. (WTI) oil futures market is Cushing Oklahoma. Meaning that futures contracts that go to physical delivery are delivered at Cushing. And that's very convenient, because no place on the entire planet has more oil than Cushing Oklahoma...

Put it this way, an arbitrageur can short the crude future today at $36 and then cover at Cushing on March 22nd by filling out some paperwork. No physical movement of oil necessary. A 30% profit in two weeks. Or they can wait until the last day and pocket 10% in one day. 

In other words, we can safely assume that it's someone's job to converge the futures market with Cushing, while not leaving a fucking dime on the table...

Because there's always a fracker willing to sell his oil cheaper than the next guy, just to stay in business a few days longer...

Someone is going to make bank shorting oil between here and reality over the next two weeks... 

Only a ~30% gap between reality and fantasy...

And to think, the entire world will be along for the ride from CNBS-land back to reality...that ride should be very familiar by now...