Global petroleum inventories have fallen to their lowest seasonal level for seven years as producers have failed to raise output to match the rapid rebound in consumption since last year’s coronavirus-driven recession. In contrast to shortages in coal, gas and electricity, the oil shortage is largely discretionary, as producers in the OPEC+ group of major exporting countries and U.S. shale firms have opted to limit increases in their output. But low inventories have eroded the market’s capacity to absorb faster-than-expected consumption growth or a sudden disruption of output without prices spiking higher. The consequence has been on display since last month, when Hurricane Ida disrupted offshore output in the Gulf of Mexico, resulting in a sharp rise […]