What sparked the reversal? Investors and oil traders had a sudden rethink about how much oil would be pumped onto world markets in coming months. The main factors: booming U.S. output , more Iranian oil supply being available than had been expected because of U.S. sanctions waivers, plus major producers Russia and Saudi Arabia ramping up production since the summer. Inventories Rising The surge in supply has reversed a key trend that underpinned the oil bull camp: inventories, or the amount of oil stored in tanks and on ships, looks to be rising again. The International Energy Agency now predicts oil inventories will exceed their five-year average in OECD countries imminently. If they keep rising, that could put even more pressure on prices to fall the way they did in 2014 when inventories swelled. “There is a determination from Saudi and OPEC to target inventories to avoid a big […]