The signs of oil shortages have been appearing for months now. The OPEC cut-backs, increased demand from Asia, the shrinking US reserves and now increased refinery consumption especially in the US. US refineries currently process a massive 17.3 million barrels a day. That figure is up 620 000 on 2016. We’ve already heard dramatic predictions like these:
See this from Reuters in Oil and Gas People:
‘The prospective reductions have left refiners scrambling to find replacement crude which is tightening the physical market for all grades…..The physical crude market now looks significantly tighter than it did in the first half of June, which has coincided with a renewed rise in bullish hedge fund positions and a modest rise in spot prices.’
Reuters were predicting this as early as last December:
‘Brent curve signals oil tanks will start emptying in second half of 2017’.