Oil Surge to $80 Shows Long-Awaited Market Tightening Is Here
- OPEC+ cuts and rising demand will drain fuel inventories
- Price rally would have major political, economic consequences
Storage tanks at the BP Plc Cherry Point Refinery near Blaine, Washington, U.S
Photographer: James MacDonald/BloombergThis article is for subscribers only.
Betting on a tighter oil market has been a bad trade for most of this year. But there are signs it’s finally paying off.
After languishing for months, crude surged above $80 a barrel in London last week as fuel demand in China and elsewhere recovers from the pandemic to reach new highs. That’s happening just as production cutbacks by Saudi Arabia and its OPEC+ allies are set to rapidly drain storage tanks around the world.