Crude oil prices continue their downward spiral as OPEC members continue to be divided and Middle East producers say they are letting market dictate prices. If $60 price level of crude is sustained, expect some scaling back of U.S. production. At $50 (which some are now forecasting for the first quarter of 2015) the impact goes beyond U.S. cuts and begins to impact foreign economies and might prompt an emergency OPEC meeting by those nations. Entire market focus has shifted from any geopolitical risk which is now completely priced out of market, to fundamentals as the continued build of crude inventories and combined destruction of demand globally due to economic factors has dealt an incredible bearish punch to energy markets. Most analysts are not calling for a rebound in prices now until the second half of 2015. Distillate inventories finally beginning to approach 3 year averages after months of low levels.

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