Oil Market Arrives at 'Remarkable Destination'
Rigzone · Andreas Exarheas ·
The oil market has arrived at a remarkable destination, analysts at J.P. Morgan said.
For all the disruption to global oil supply chains, from production and refining to shipping and trade, the oil market has arrived at a remarkable destination - a surplus.
That’s what analysts at J.P. Morgan, including Natasha Kaneva, J.P. Morgan's Head of Global Commodities Strategy, said in a J.P. Morgan report sent to Rigzone by Kaneva this week, adding that “recovering Middle Eastern flows, rising production elsewhere, and weak demand have pushed global supply above consumption once again”.
In the report, the J.P. Morgan analysts estimated that the global oil market hit a surplus of 1.1 million barrels per day in September and 1.4 million barrels per day in October, “nearly matching last year’s average of 1.3 million barrels per day”.