This Chart Helps to Explain The Bottomless Crude Oil Price

In his latest webcast investor presentation fund manager Jeffrey Gundlach to illustrate why he can’t be a secular bull on crude oil yet, even at $30/barrel:

 

Crude_Oil_vs._Prices

U.S. crude oil production is still above the level it was at when the big break lower occurred in the summer of 2014. This is a powerful chart that definitely helps to explain why crude oil has been bottomless.

Despite the bearish long term fundamentals Gundlach indicated that he felt that oil may have put in a short term low below $30/barrel today: “This could be the flush day in oil.”