The Largest Oil Inventory Increase In History

1. The oil market’s massive inventory problem- Oil inventories increased in the second quarter at a rate of nearly 1.8 mb/d, more than four times the ten-year average, according to Standard Chartered. – Inventories typically increase in the second quarter, but this was the largest build since data collection began in 1956. – The oil market has technically flipped into a deficit, although at a much lower base. Instead of a 100 mb/d market, supply is right around 88 mb/d and demand at 89 mb/d, rebalancing at a lower level. – If sustained, the…