There are a lot of bears in the Crude Oil market currently. They argue that Oil, as well as other commodities are in a bubble, and that Crude Oil is a good short. They point to bullish sentiment and say that the rally is over. They also point towards Cushing in Oklahoma, noting that stocks of Crude Oil and Petroleum Products in at very high levels.
What these bears fail to understand is that their US-centric view and thinking process is outdated. The Great Empire (US) is not the only important player within the Oil demand market anymore. What smart money commodity bulls keep pointing towards is the New World, the BRICs as well as the E7: Brazil, Russia, India, China, Mexico, Turkey and Indonesia. These countries are eating up an insane amount of Crude Oil and their per-capita usage is so much smaller than developed countries, that their growth potential is mind boggling.
Crude Oil bulls should also be happy to see divisions and cheating within the OPEC, from the supply side of things. While Saudi's have turned on the spigots, Iran and Venezuela is turning them off. Bulls should also be happy with the IEA panic release of emergency supplies - however, to be brutally honest, 60 million barrels released by IEA is 2/3rds of the daily demand... a drop in the ocean. At 2 million barrels a day, this will be eaten up in 60 days! The most important aspect of the Supply is the current increase in the Saudi Arabian production capacity. This is a critical chess move, that has placed Saudi's production capacity to levels not seen since 2008. Market will be testing the countries capabilities and a slight disruption to supply will once again lead to Crude Oil spike.