I told you guys HOFF. HOFF is going to $21.00. If it gets past $21, then its going to $24. After $24, is $30. Those are my hard price points.
annual global demand at 84.5 million barrels per day (mbd) which means over 31 billion barrels annually. This means consumption is now within 2 mbd of production. At any one time there are about 54 days of stock in the OECD system plus 37 days in emergency stockpiles. OPEC cannot significantly increase production from current levels. 3 months supply. That's not an inventory glut. Any disruption or extended cold front creates vulnerability to the system. Having 340 million barrels in storage is insignificant to prices. With only 3 months of supply, a massive supply disruption wipes that out. Point is, nobody sells ahead of hurricane season. Nobody sells ahead of winter demand season. That's what drives prices up.