A possible generational low in oil and energy stocks

The bad news just doesn't stop coming for oil. It all began when Saudi Arabia had turned on the production spigots to counter growing production from American frackers, and now it has to contend with the geopolitical dimensions of the growing power of Russia and Iran in the Middle East. The calls are growing for $20 oil and even $10 oil as there seems to be no prospects of an end to the oversupplied market.

For some long-term perspective, keep in mind this chart from of supply and demand from Jeff Gundlach (via Business Insider). While it is true that there is a significant gap between supply and demand right now, demand has steadily risen and that excess supply will eventually get absorbed:

The full post is at our new site here.



Site Notice
We are extending the deadline for taking new subscribers from midnight Friday (Pacific Time) to midnight Friday January 22, 2016 because of the website outages in the last few days. Readers who aren't ready to subscribe can receive notification of free posts, which are open to the public two weeks after publication, by registering here.