Sure the market is tighter than it was two years ago, but one look at gasoline inventories tells you there are more than ample petroleum supplies. In fact we have more gasoline inventories than a year ago, and we still have over 400 million barrels of oil in storage with both saudi arabia and russia now free to increase production limits going forward, something russia has been chomping at the bit to do the last year of the OPEC deal. Throw in the US Oil production near 11 million barrels per day at all time record levels, and things are not near as tight in the oil market as the oil bulls would have you believe right now.

How do you know there is a bunch of rampant speculation in the oil market beyond the fundamentals, just look at how many speculators ran from the market in front of the most recent OPEC meeting. We dropped from $72 a barrel all the way down to $64 a barrel in two weeks, most of the move coming in five short days.