Balances: Surplus Narrows, Opec-Plus Must Find Pause Button

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All signals show a supply surplus is on the way after six quarters of straight inventory draws. Supply has been growing fast in November and jumped by 1.4 million barrels per day from October. Demand added just 200,000 b/d. Oil consumption in November was still 1.9 million b/d ahead of supply, and that is expected to remain unchanged in December before rapidly declining in January, leading to a surplus of 1.6 million b/d in February-May. Prompt crude prices show a discount versus later loadings, a sign of a well-supplied market. The flat price of Brent again hit $66 per barrel on Dec. 20, down $18 in four weeks before bouncing back to $72.

Oil Demand, Oil Supply, Oil Inventories, Crude Oil, Oil Products
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