With crude oil at or near its lowest level in the past six-years, the folks over at CNBC felt it was time to examine the wholesale price of water compared to that of U.S. crude oil. What they found out might not be a surprise to those who have been predicting for several years that water would one day be more expensive than crude oil… Wake up the time is here, the average price for one gallon of crude oil is now about $1.03 per gallon vs. the average wholesale price for a gallon of water being about $1.21 per gallon. Many technical traders are keeping a close eye on the $42.00 level vs. the WTI crude contract. Thoughts are if this level doesn’t hold crude oil prices could quickly tumble into the $30’s. There are still no real major positives showing up on the demand side of the equation, while we continue to be force fed a glut of bearish headlines on the supply side. Remember, production here in the U.S. has increased by about 600,000 barrels a day this year and seems to be holding steady at about 9.4 million barrels for several months. At the same time, OPEC said its production rose to a three-year high this summer. OPEC said it pumped 31.5 million barrels a day in July, up 100,000 barrels on higher output from Iraq, Saudi Arabia and Angola. OPEC also reported a 2.87 million barrel a day oversupply in the 2nd quarter. (Source: CNBC)
