Global oil supply is expected to soon exceed need, for the first time since the Iran war began in February. Even so, more supply will not automatically push diesel prices lower, and an energy trader says the market is still far from normal.
The world is expected to soon have more oil than it needs for the first time since the Iran war began in February. But more oil will not automatically lead to lower diesel prices.
According to the International Energy Agency, global supplies are expected to outpace demand in the fourth quarter of this year.
Rebecca Babin, a senior energy trader and managing director at CIBC Private Wealth, says the supply-and-demand balances on paper give reason to feel better. However, she describes a market that still operates with significant inefficiencies, elevated risks and very little room for error.
Source: MarketWatch (snippet-based)
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