Oil market shifts to surplus despite disruptions
JPMorgan estimated supply exceeded demand by 1.4 million barrels a day last month. Global oil markets have shifted to a supply surplus, despite months of disruption caused by the war in the Middle East. JPMorgan estimated supply exceeded demand by 1.4 million barrels a day last month, driven largely by Middle Eastern exports returning to prewar levels, while HSBC forecast Saudi output will jump in the fourth quarter as exports recover faster than expected. Soaring output in Latin America — which is producing around 1.5 million more barrels a day than last year — also contributed to the global glut. The surplus and the US midterm results have pushed crude prices down 20% from this year’s peak, putting Americans “ days away from enjoying the cheapest retail gasoline since March, ” a leading Bloomberg columnist wrote.
JPMorgan estimated supply exceeded demand by 1.4 million barrels a day last month. Global oil markets have shifted to a supply surplus, despite months of disruption caused by the war in the Middle East. JPMorgan estimated supply exceeded demand by 1.4 million barrels a day last month, driven largely by Middle Eastern exports returning to prewar levels, while HSBC forecast Saudi output will jump in the fourth quarter as exports recover faster than expected. Soaring output in Latin America — which is producing around 1.5 million more barrels a day than last year — also contributed to the global glut.
The surplus and the US midterm results have pushed crude prices down 20% from this year’s peak, putting Americans “ days away from enjoying the cheapest retail gasoline since March, ” a leading Bloomberg columnist wrote.