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The Oil Market Is Tighter Than You Think

The Oil Market Is Tighter Than You Think
A 3D-printed oil pump jack is seen in front of the OPEC logo in this illustration picture, on April 14, 2020. Dado Ruvic/Reuters
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Commentary

In the past three months, oil prices have corrected dramatically as global oil demand has eased and concerns about a Chinese slowdown have added to a possible European recession. The picture of demand growth may be weakening, but the global supply-demand balance remains tight, and years of underinvestment may bring elevated oil prices for longer.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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