Despite the 19% fall in the price of the WTI front month between the beginning of July and August 2, oil market fundamentals remain intact, and supply continues to fall, that’s the view of Deutsche Bank’s commodities research analysts Michael Hsueh and Grant Sporre.
In a research note sent out to clients at the end of last week, Michael and Grant point out that even though the price of WTI has collapsed over the past month onshore production is still declining; product demand has grown by 316,000 barrel a day year-on-year and refinery run growth has increased by 165kb/d. Further, inventory surpluses for both gasoline and distillate peaked in April and have since declined. This decrease in...
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