Strange season to top off the tank

…Crude oil is now trading for $72 per barrel.

But by the Citigroup analyst Tim Evans’ account, it should be $62.

“There’s no shortage of crude oil. And yet the market seems to be pricing in an imminent shortage,” Evans said. “In my view the markets are relatively overvalued here, and the prices cannot be sustained.”


“Traders, who are buying it, are at a risk because they are basically looking for a shortage where there doesn’t seem to be one.”

During the weekend, flooding in the Midwest put a domestic refinery — one that produces about 108,000 barrels per day — literally under water in Coffeyville, Kan. It was still unclear how much inventory was lost or how long it will be out.

Meanwhile, crude oil inventory levels are at their highest levels since 1998, and the use of refineries so far this month is up to 90.03 percent, or about a 2.7 percent rise in the last month.

The Organization of Petroleum Exporting Countries had not even hinted at increasing production levels.

Herald-Tribune (Florida)