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Oil prices continue to fall… with no signs of stopping.
Zero Hedge reports the U.S. oil market just witnessed its fastest swell in supply ever. Last week saw another 9.6 million barrels added to the oil stockpile. It was the 10th straight week of increases.
According to the U.S. Energy Information Administration (EIA), domestic crude supplies are now at their highest levels in 80 years (444.4 million barrels).
At this rate, U.S. storage facilities will be maxed out by June.
Production continues to increase despite a reduction in drilling rig counts. That’s because gains in efficiency have made existing wells even more productive.
Bottom Line: Crude prices dropped under $42 per barrel on Wednesday. (They then moved higher (over $43) after the Federal Reserve’s interest rate announcement.) But make no mistake… crude inventories are hitting spectacular new highs. And that means prices will be going lower.
The rout in oil is not over. But when it is, extraordinary deals will present themselves in the energy sector. We’ll let you know which incredible companies to snatch up so you can profit from the situation. Stay tuned.