Soaring interest rates are transforming the oil market

“Nobody wants to hold inventory, and I think we are, as a world, going toward lower inventory forward cover,” Amrita Sen, co-founder and director of research at Energy Aspects Ltd. said in a Bloomberg TV interview in June. “If you ask me what did I miss this year, it has been the rising cost of capital and what that’s doing to the market, which is destocking.”Take a two-million-barrel cargo with prices at, say, US$80 a barrel.

It all serves to increase the chances of the world having to get used to lower levels of oil inventories. The International Energy Agency forecasts a demand for OPEC crude and inventories of more than 30 million barrels a day over the second half of the year.

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Soaring interest rates are transforming the oil marketSoaring interest rates are transforming the oil market as traders looks to sell down inventories to cut costs while hoping demand grows. Read on.
La source: financialpost - 🏆 7. / 85 Lire la suite »

Soaring interest rates are transforming the oil marketSoaring interest rates are transforming the oil market as traders looks to sell down inventories to cut costs while hoping demand grows. Read on.
La source: financialpost - 🏆 7. / 85 Lire la suite »