Crude Oil Shortages Beginning To Bite In Key Markets

Last month, OPEC and its non-OPEC allies, known as OPEC+, agreed to extend their deep production cuts through July in an effort to rebalance oversupplied markets in the face of pandemic-hit demand. The cuts were supposed to take ~10% off the markets with July’s cut clocking in at 9.6 million bpd. But now there are signs that the pendulum could have swung a bit too far, with the markets beginning to experience shortages of key crude grades. There are growing signs that the markets are undersupplied with Urals and Arab Light thanks…