Nobody's talking about it but before '07 when the U.S. got taken over by the professional victims we had climbing real wages along with climbing output. Since then we've seen output stalling and the beginnings of a wage crunch. My bet is in further wage cuts.
Oil Glut Sparks Latest Dilemma: Where to Put It All
As storage tanks near capacity, some predict spillover will send crude prices even lower
By Nicole Friedman
Updated March 5, 2015 3:17 p.m. ET
In a world awash in crude, oil producers and traders are facing a billion-barrel conundrum: where to put it all.
U.S. crude-oil supplies are at their highest level in more 80 years, according to data from the Energy Information Administration, equal to nearly 70% of the nation’s storage capacity. A key U.S. storage hub in Cushing, Okla., is expected to hit maximum capacity this spring. While estimates are rough, Citigroup Inc. believes European commercial crude storage could be more than 90% full, and inventories in South Korea, South Africa and Japan could be at more than 80% of capacity.
The danger of running out of places to stash crude: Some analysts predict prices, already down 50% since June, could spiral even lower as producers sell oil at a discount to the few remaining buyers with room to store it. Consumers, though, would continue to be big winners as refineries convert an ocean of crude into gasoline and other fuels.
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