Economics
Why the Global Oil Glut Might Not Fill Swimming Pools After All
- Predictions surplus oil would shift to sea yet to materialize
- Oil prices exceed $40 amid signs of slower inventory growth
Here's Why This Is Only the Fourth Time Oil Has Tanked
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One of the warning lights that there’s too much oil around is no longer flashing, adding to signs that global crude markets are finally on the mend.
Just a month ago, oil traders were weighing up whether to park unwanted crude aboard tankers while BP Plc Chief Executive Officer Bob Dudley joked that swimming pools might be needed to hold the excess. Yet instead of offering bumper profits, as in previous market gluts, stockpiling barrels on ships would result in a financial loss, just as it has done for the past six months, in a sign the current surplus may not be as big as feared.