The excess supply glut been helped recently by unplanned outages and we still don’t know how aggressive Saudi Arabia’s production/pricing policy will be under new management but, bottom line, the market is slowly balancing… Here is the WSJ:
“As a result, the glutted oil market has started to even out, OPEC’s data shows. Global oil oversupply halved to 950,000 barrels a day, based on OPEC’s production numbers in April, compared with overproduction of 2.13 million barrels a day in 2015.
The news came after the International Energy Agency said Thursday that a global glut had started to diminish. Worldwide oil stocks will fall to 200,000 barrels a day in the last six months of the year from 1.3 million in the first half, it said. The IEA has previously projected supply will exceed demand by an average of 1.5 million barrels a day in the first six months of 2016.”
http://www.wsj.com/articles/opec-sees-rival-oil-production-declining-as-markets-rebalance-1463135728
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