Steady oil price belies weakening physical market

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The oil price is holding steady close to US$45 a barrel, but prices further forward and in the physical market are showing new signs of weakness ...

The oil price is holding steady close to US$45 a barrel, but prices further forward and in the physical market are showing new signs of weakness mainly due to a fall in demand from China after the country's buying binge earlier in the year.

The market began to rebalance in late May when economies began to reopen and as OPEC and other major producing countries made big production cuts. About 90 million barrels of crude and condensate is still sitting in floating storage offshore China ports as of 21 August, Vortex said.

 

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