Apr
20
The Real World of Oil Has a Warning for Financial Markets
By-
OPEC supply management yet to work as producer group intended
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Brent is benchmark for more than half the world’s crude oil
The Brent physical oil market is flashing signs of weakness again as dwindling Asian purchases, an influx of American crude to Europe, and supplies flowing out of storage all combine to recreate a glut in the North Sea.
The weakness comes at a time when speculators have started rebuilding bullish positions after a sell-off last month, betting the market will tighten in the second quarter. Yet, Brent physical oil traders say the opposite is happening so far, according to interviews with executives at several trading houses, who asked not to be identified discussing internal views…
The Real World of Oil Has a Warning for Financial Markets
