Saudi Goes to War, page-19

Inventories of refined products have risen a lot.  The slowing of the fall in crude  seems to be because the refiners have been working over time.  Now there is a glut in both,  with oil having nowhere to go (except contango if the price is right).   Grim reading for  those who chose to do so, and a very fluid picture where the latest predictions are quickly out of date.

Prices were relatively stable last week, but that respite ended abruptly when Goldman slashed its three-month forecasts for Brent to US$42 a barrel from US$80. It cut its outlook for the US futures contract to US$41 from US$70.

Read more: http://www.smh.com.au/business/oil-falls-to-nearrecord-low-20150113-12mw4p.html#ixzz3OeN59Ni5

I sold out of oilers for a small profit last week and am sitting this one out / taking a small punt on transport given their costs are much less.  I'm increasingly concerned about junk bonds causing a major financial crisis if oil stays sub $50 for long.​