Last Thursday I appeared on America’s First News hosted by Matt Ray, one of the topics was what’s going in the oil market. One of the few bright spots when it comes to earnings picture is the energy sector, which his benefitting from higher oil prices in and easier comparisons to lower earnings in Q1 2016.Those higher oil prices reflect OPEC production cuts, but those same cuts have spurred US production back on line. Despite the OPEC production cuts that have taken more than 1 million barrels per day off the oil market, the added US capacity and less than booming global economy have led to US crude oil inventories to swell. The result has been a reversal in oil prices from roughly $54 in February to just below $48 exiting last week. The growing view is if OPEC doesn't extend its production cuts, oil is likely to tumble to $40.

Source: Forbes March 26, 2017 22:18 UTC