Energy Trader Sees Lower Oil Levels From Here Due to Supply Situation

The energy complex has been a big contributor to volatility in the S&P 500 as 10% of the index is comprised of the energy sector. As pressure and wild swings hit the underlying commodity, the related equities take a hit as well because their balance sheet performance is also contingent on the price of oil. From the trading floor of the NYMEX, Peter Amandio tells TheStreet’s Jill Malandrino the moves to the downside are not actually that extreme in oil, but the velocity of the way it comes off is. What’s happening is the traders that are selling have to sell it. Over the past couple of days, when oil is down $1-$1.50, it seems as if a floor could be in and then a flurry of violent selling comes in at the end of the day pushing it down even further. Amandio explains the weakest things today on the board have been the products, with gasoline leading the way, because Brent crude has been weak. For the long term, while you can see a violent move to the upside in a bear market, Amandio does not see any change to the supply situation and you could see lower levels from here, ultimately.