• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days Does Toyota Know Something That We Don’t?
  • 3 hours America should go after China but it should be done in a wise way.
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Why Is There A Gasoline Glut?

Have you tried to drive anywhere recently? I mean, have you just gotten in your car, not necessarily at rush hour either, and tried to get to a store or a coffee shop or – god forbid – the beach? I don’t care where you live; it’s just impossible, isn’t it?

Hang on, I hear you – you’re looking for a column on energy stocks – but stick with me a second.

One of the ideas of the rebalancing in oil that we’ve been depending upon has been that the drop in oil prices would bring an ultimate drop in production here in the U.S., shrinking gluts and bringing a slow but steady price rebound back to profitability levels for marginal barrels somewhere above $75.

We’ve recently reached a summertime lull in the rally despite the fact that rebalancing has demonstrably begun. There’s been a noticeable trend of production drops in key shale areas; and despite the gains in efficiencies, we were on track to see a full crude rebalancing where production would again drop beneath demand here in the U.S. sometime later in 2016.

But our progress has been stalled. And it’s been all about gasoline.

Sure, we’ve had a return of some production from Canada, Nigeria and Libya – although it really hasn’t been all that significant. And yes, we’ve had some financial pressure on oil from new hedge selling from E+P’s, locking in breakevens at $50 a barrel. But what has really stopped…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News