We are beginning to see the first real signs of the global oil markets moving rapidly back into balance. OPEC, which produces approximately 40 percent of the world’s oil supply, cannot meet future oil demand on their own. • On May 11th the U.S. Energy Information Administration (EIA) reported that U.S. crude oil production declined by 206,000 barrels per day over the six weeks ending May 5, 2016. • In the same weekly report: o U.S. crude oil inventories unexpectedly fell by 3.41 million barrels during the week ending May 6, 2016 o Gasoline inventories declined by 1.231 million barrels o Distillate stockpiles fell by 1.647 million barrels • The International Energy Agency (IEA) say the annual summer spike in demand for transportation fuels has begun. When the oil markets are oversupplied, the speculators which control the oil futures markets tend to ignore supply outages that […]