| Investors looking at crude oil technicals and thinking the commodity looks like a good value right now are like the people who saw a white dress when the infamous photo of a blue dress crossed their newsfeeds. In this case, investors' misperception comes from reports of oil rig shutdowns and crude's ability to remain above a key technical level, suggesting the commodity has bottomed.
Those are distractions from a real fundamental issue -- there's too much oil and too few places to affordably store it, said Tim Evans, Energy Futures Specialist at Citi Futures. "I'm trying to keep my clients from becoming complacent about rising inventories as if they don't matter because price action suggests we should look away from physical surplus in the market," Evans said. "There's substantial downside risk, particularly at the front of the WTI crude oil curve."..............................................Full Article: Source
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