Global Crude Oil Market Moves Back Into Deficit

posted in: crude oil, Energy | 0

The market has done what it does best and that is to adjust to supply & demand and settle into a new equilibrium price range:



The global crude oil market is moving back into deficit after spending the last couple of years in extreme surplus. As i’ve been saying for the last couple of months dips should continue to find support primarily through strong demand while rallies will meet increasing marginal supply as shale producers gradually get back into the game. I envision a range contained by the low-$40s on the downside and the low $60s on the upside:


WTI Crude Oil (Weekly)




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