Oil Market Deficit Returns As Demand Rises

For the past two years, analysts have continually predicted the death of the traditional oil industry as, thanks to new technology, the US shale oil industry grabs market share.

However, despite shale’s early success, it now looks as if the industry is struggling to keep up with demand.

Thanks to rising oil demand, and OPEC’s efforts to curtail supply, comparative inventory (C.I.) has been dramatically reduced in 2017 with levels falling by 159 million barrels since February. Inventory levels are now approaching the five-year average for the first time in nearly three years.

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Oil Market Deficit Is Back

According to analysts at Morgan Stanley, over the last 30 weeks, US crude inventories have drawn at their fastest rate in 35 years. To ensure that...