Things have been happening increasingly fast in the oil industry, especially with prices. With so much volatility around, price movements are quick and often surprising. Right now, the general optimism on oil markets is in decline, because of the latest price rally. It may sound counterintuitive, but it is, in fact, easy to explain. The prices of Brent and West Texas Intermediate have doubled since April. In the case of WTI, the rally was a lot higher than a doubling, too, if we take into account the swing below zero. As a result of this rally, there are already reports that U.S. shale oil producers are restarting shut-in production, and there are opinions from senior energy officials from OPEC+ members that the market is due for a deficit before the end of this year. Such opinions should have been bullish for oil, pushing prices even higher. Yet this hasn’t […]