Oil Inventories

The below chart from the May 19, 2016 Daily Report from Confluence Investment Management shows that when normalized, oil inventories are building at a lower rate than they normally do at this point of the year. This suggests the 86 year cycle suggested by Martin Armstrong may be playing out, as coincidentally inventories are at an 86 year high

http://www.confluenceinvestment.com/

The second chart from the same CIM issue plotting oil prices vs. the Euro and oil inventories vs, prices suggest a low $50's fair price, matching my target back on April 24, 2016.

http://www.confluenceinvestment.com/

If inventory draws follow the 2015 patterns oil prices should average high $50-60 in price, according to the CIM crossplot.

http://www.gbm.scotiabank.com/English/bns_econ/bnscomod.pdf