For the ninth week in a row, the amount of US Crude Oil in storage has expanded. The US seems to be at a crossroad with too much oil, and nowhere for it to go. Matthew Phillips wrote an article for Bloomberg last week that reiterated some mutual feelings on this situation.
Since October, the amount of oil stored there has almost tripled, to more than 51 million barrels. As oil prices have crashed, from more than $100 a barrel last summer to below $50 now
Phillips also went on to say:
Oil investors appear to be coming around to the notion that a lack of storage capacity could lead to another price crash.
Do we think that there will be a quick rebound in the price of crude oil? As of 3/11/15, our Point and Figure charts say “not so fast”. We could potentially see these prices test the bottom again before making a push higher. We’ll just have to wait and see.