Oil Market's Glut Narrative Just Blew Up
Less than a month ago, analysts were warning of a looming glut of crude oil as tanker traffic via the Strait of Hormuz began to recover amid a U.S.-Iran ceasefire. Within days of these warnings, the ceasefire was a painful memory, missiles were flying again, and now Yemen’s Houthis are striking tank
Source: OilPrice.com
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DW NOTE
The IEA has been forecasting a supply glut since January — forecasts now worth exactly what you paid for them. WTI is up 27% in a month and Brent has surged 31%, both tracking producer-level inflation that's running at 5.51% while the Fed holds rates at 3.63%. When real rates are negative and refinery input costs are rising faster than headline CPI, the only glut is in the word count of bearish oil analysts.