Oil Squeeze of 2023 Turns to Surplus in Warning for Market Bulls
- Crude traders and OPEC had expected steep inventory declines
- IEA now estimates supply surplus for fourth quarter of 2023
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The oil supply squeeze widely expected at the end of last year now looks like it may have been a surplus — a reminder for any remaining crude bulls to tread carefully.
A year ago, crude traders and forecasters anticipated that the fourth quarter would be the strongest point of 2023, with China’s post-pandemic demand recovery pushing prices up to $100 a barrel. More recently, the Organization of Petroleum Exporting Countries has been predicting a record deficit of 3 million barrels a day.