Demand has been strong this summer, but the supply glut remains immense
by Howard Gold
Oil bulls were relieved when Brent crude rallied in recent days after having fallen nearly 20% from its recent peak above $52.
But those who expect oil to retake those highs may be sadly disappointed, and indeed oil prices fell modestly on Tuesday. One prominent industry observer, who has been consistently bearish on oil for the last two years, says crude prices have only one way to go — down, way down.
Stephen Schork, editor of The Schork Report, based in Radnor, Pa., attributes the recent rally, in which crude prices doubled from their mid-$20s lows in January and February, to a massive short squeeze.