by Justin Spittler
Casey Research
Oil has hit a wall.
As you probably know, oil crashed in the summer of 2014. The price of oil went on to plunge 75% in less than two years.
Oil crashed because there was simply too much of it. At the end of last year, the global oil industry pumped about 1.8 million more barrels per day (bpd) than the global economy needed.
This year, the world has been slowly chipping away at this giant surplus. This caused oil prices to take off.
You can see in the chart below that the price of oil nearly doubled between February and June. But since then, oil has gone nowhere.