Crude oil fundamentals are as weak as they have been in 2015 due to a massive over supply of product and lack of global demand. To make matters worse for the supply glut, Iran has production potential greater than most are giving credit for and that will soon hit the market. There is also an indication that U.S. production will see a third and fourth quarter increase based on Bakken, rail and barge numbers. That said, Dan Dicker, Senior Energy Analyst at TheStreet, tells Jill Malandrino that oil could test the lows made in March, but will not break them and this is the last leg down. Recall Dicker has been preaching caution on crude oil and related energy equities since late Spring. Dicker says this is all about a 'W' recovery and the key word right now is 'supply'. Long-term, however, the price crude is at now is unsustainable and not even close to the breakeven price for producers and refiners to be profitable. So, when does the energy sector become investable based on oil prices? Dicker explains the space needs to see consolidation and bankruptcies and this will take place on the wholesale level, clearing the market place.
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