Why are gasoline and oil prices so low? Barani Krishnan explains it the hard way.
Oil cut short a four-day rally on Wednesday, with investors and traders focusing again on the supply glut in the market after U.S. crude stocks set record highs.
A rebound in the dollar also weighed on crude prices because it makes commodities denominated in that currency more costly.
In other words, the supply chain is full, demand has peaked, and oil producing and exporting countries do not want to cut production.
Demand, meet supply.