Savvy Trades and Investments

[researcher59]

Oil hit $40.68 overnight and the May contract hit $42+ and will be the front month next Tuesday ....

This oil rally looks overextended, but I think the notion that cushing storage will reach 100% is nonsense. Refinery maintenance season is ending and crude demand will pickup in the coming weeks. Gasoline demand is exceeding expectations, up significantly y/y.

I'd guess we see another pullback to the $35 level and perhaps a bit lower, but below $30 won't happen again, imho.

Here's an interesting article on the storage situation - loads of storage capacity remains according to the author -

http://seekingalpha.com/article/3958983-oil-storage-even-close-full