Diverging Factors Generate Crude Oil Volatility

Crude oil prices are now facing a difficult inflection point where inventories are rising as refiners go to maintenance, while producer are beginning to cut back to avoid a large overhang in stocks.  On Friday, Goldman Sachs lowered their target price for 2015 to $47 from $54 per barrel but said they would not be surprised if prices dropped to $20 per barrel.

The whipsaw price action recently has been…