Oil prices have been on a tear over the past week, but this rally may not be entirely driven by fundamentals, sorry Andy Hall.
The all-in cost of tanker vessels chartering has once again intersected with the slope the oil forward curve, making for conditions which have previously initiated a process of floating storage inventory build.
Oil Asset Impairments Soar – Hit $100 Billion In 2015, Up From $23B In 2014 And $9.3B In 2013
According to research from Deutsche Bank, over the last two years alternating phases of inventory build and draw have ranged in magnitude from 30 million barrels of oil to 70 mmbbl as offshore storage has become one of the most profitable markets for oil traders...
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