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Oil Withstands Broader Market Drop on Tight Supply Fundamentals

  • Supply crunch worse than in previous recessionary eras: Yergin
  • ‘Razor thin’ supply makes this time different: Yergin
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Oil futures shrugged off a broader market selloff, sustained by a growing belief that even an economic slowdown would fail to alleviate an ongoing supply crunch. 

West Texas Intermediate futures rose to near $121, erasing over $3 of losses during the session. A growing chorus of market watchers believe that inventories are so fundamentally stretched even a recession wouldn’t cut demand enough to restore balance.