Relief Is In Sight

I’VE CALLED THE TOP in oil so many times in this column it’s getting embarrassing. Yet here I go again. I continue to believe that recent record prices are way overdone, and that we’re due for a major and long-lasting retracement, probably all the way back into the 40s in benchmark crude. . . .

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The reality is that there’s plenty of oil to meet daily consumption demand. At some point, the panic-driven desire to hold inventory in excess of that demand has got to run out of steam. It costs real money to hold millions of barrels of oil in inventory, and sooner or later the holders get tired of picking up the tab.

Donald Luskin at SmartMoney.com