You should never bet against the capability of oil investors to turn the world completely upside down. A great example occurred on Wednesday of last week, as Arthur Berman argues in this excellent article. He points out that Brent crude surged from $62 a barrel to $65 a barrel on 10 June, despite the US Energy Information Administration announcing on that very same day that the global oil production surplus in May rose to almost 3 million barrels. ‘Not to worry, ‘demand growth is robust,’ the oil markets seemed to be saying. But if you look at the same EIA report, you will find that whilst worldwide oil production declined by 106,000 barrels per day, consumption fell more by 156,000 barrels per day. It is supposed the job of oil futures markets to anticipate the future – that’s why they are, of course, called futures markets. Perhaps, therefore, they […]