Something's got to give – and I’m betting it’s going to be energy. In fact, I’d say that by the end of the year, crude oil and the rest of the energy complex will suffer a long overdue correction. That’s because I see global demand slowing amid a decline in consumption and growing inventories.


Today at 10:30 AM, the U.S. Energy Department released the weekly crude oil inventories. According to the most recent numbers, oil inventories rose again this week, although somewhat less than expected.

While you can't place too much emphasis on a single data point, the inventory trend has been no friend to energy bulls in recent months. That's because gasoline inventories reached the highest in level in 15-years recently, until a small drawdown last week. This is hard evidence of falling energy demand in the United States.