Wall Street is giving five big reasons for why the price of oil is headed lower. You may have heard two but at least two are surprising.
First reason is the Cushing, Oklahoma, storage dilemma.
Oil companies have been storing oil in tanks at Cushing, which is the main hub for WTI crude, in order to not add new supply and kick a fragile market while it is down. But they can only do that for so long, and now the Cushing tanks have hit record levels. Citigroup believes that Cushing will hit maximum storage levels in a few weeks.
"Storage levels at Cushing are reaching tank tops which the oil market will have to clear, but most likely at crude breaking below $30/WTI barrel," the Citi report said. "The crude has to end up somewhere likely pressuring prices."
The second is a surprising one. Iranian crude could flood the market.