OPEC+ decision to cut output may lead to supply deficit in oil markets. Global oil inventories are in a decline that would be difficult to reverse. U.S. distillate inventories are down to the lowest since records began in 1982. Last week, OPEC+ said it would reduce its oil production target by 2 million barrels daily, with actual cuts of between 1 and 1.1 million bpd. The announcement pushed prices higher. By the end of the week, the resulting oil price rally had run out of steam, and prices were once again sliding on recession fears. And these fears might mask how the oil market tips into a shortage. When the cartel said it would be cutting production, OPEC officials explained the reasons for the decision had to do with anticipating a drop in demand and saving spare production capacity for the eventuality of a sudden output outage such as […]