The US oil glut is inching ever closer to a new record

Oil markets saw the EIA report, then they saw red.
Oil markets saw the EIA report, then they saw red.
Image: AP Photo/Hasan Jamali
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The Energy Information Administration’s weekly look at oil in America just came out (pdf), and commercial crude stockpiles are at 490.7 million barrels. That’s just 200,000 barrels short of the record 490.9 million barrels set back in April.

Once more, with feeling, EIA: “U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years.” Investors, who have record short positions against oil prices, erased many of the commodity’s gains from a two-day rally earlier this week.

That means recession-era lows once again loom for crude:

As oil prices continue their plunge, lots of asset classes, from junk bonds to petrocurrencies, are getting dragged down in sympathy. As the carnage continues with no clear end in sight for the crude collapse, things may get bumpier still.