As Chris Kimble’s chart shows, crude oil has broken up on the upside after three unsuccessful attempts since June 2010.
After Lybia, we may be losing some Nigerian supplies as this country is going into elections which may no be calm over the next several weeks. Lybia and Nigeria produce high quality low sulfur (light sweet crude called Bonny Light) oil needed to produce transportation fuel. There is no spare capacity for such light oil.
Chris’ second chart shows that equity investors are getting worried for transportation companies stocks. To that effect see this mornings’s EARNINGS WATCH: DUTCH “FEDEX” WARNS ON PROFITS.