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Oil Market Embraces Lower-for-Longer Price View as Futures Sink

A pumping unit in Akkystau village, near Atyrau, Kazakhstan.

A pumping unit in Akkystau village, near Atyrau, Kazakhstan.

Photographer: Andrey Rudakov/Bloomberg
Updated on

The global oil surplus increasingly looks like a problem that’ll take years rather than months to solve — and the market is pricing that in.

U.S. crude futures for delivery in five years have broken below levels seen during the financial crisis. With leading OPEC members pumping at a record, supplies from elsewhere holding up and Iran close to reviving exports, the market is signaling the glut will persist.