The Global Oil Glut Returns as High Prices Crush Demand

The global crude oil market is moving back towards oversupply, according to analysts from Goldman Sachs and JPMorgan, with demand destruction from high prices causing fears of a deficit to fade and concerns of a glut to rise. 3 million bpd,” JP Morgan said in a report this week. Goldman, meanwhile, saw the oil market as being balanced in both September and October, amid reports of recovering oil exports out of the Persian Gulf and despite intensified Iranian attacks on tankers in the Strait of Hormuz, with five of these reported since Sunday alone.

The investment bank also reported that it did not detect any global oil inventory declines over the last two months, after a string of draws in previous months to keep a lid on fuel prices.