Oil Glut Deeper Than Just Crude Exposed as Recovery Stumbles

For almost two years, the spotlight in the global oil market has been on a surplus of crude. The latest stumble in prices has shown that the glut extends further.

As the U.S. shale boom sputters and the nation’s crude inventories post the longest pullback on record, there are signs that, although stockpiles remain abundant, the excess is clearing. Oil’s retreat to a two-month low this week demonstrates that surpluses in other parts of the market, most notably refined fuels like gasoline, are holding back any lasting recovery.