Global demand for oil may be slowly rising, but the industry is still
pumping over 2 million barrels a day more than what the market needs.
The surplus in the U.S. alone is getting closer to filling up all of the
onshore storage capacity, and millions of additional barrels are being
stashed in tankers at sea.
The price of gasoline is tied to the price of oil. Both commodities
endured a long losing streak that started in the first half of 2014, but
since bottoming out in the first quarter of 2015, each has recovered a
large chunk of lost ground.
In just the past few trading days, nearly all of the major broad-market
indices for U.S. stocks — both large cap and small cap — have reached
record levels. The only one we’re still waiting on is the Dow Jones
industrial average, which is a relative slacker by comparison because it
hasn’t managed to set a new high-water mark since last month.