It is no secret that the energy sector has been under tremendous pressure over the last several months. It’s hard to imagine that the fundamentals could get much worse:
* The domestic supply overhang of crude oil has brought prices back down to their March lows. Crude oil futures are down nearly 30% over the last 6 weeks.
* Leading global economic indicators point to a further slowdown in Emerging Markets which will further dampen commodity demand.
* The deal with Iran, if approved, will just add to global supply worries.