Do Oil Market Fundamentals Justify $40 WTI?

Oil prices have been locked in the current price range for months now, with price volatility dropping drastically. It seemed that only inventory reports, OPEC’s compliance rate, and the re-opening of various European countries such as Spain and Italy could trigger price movement. But the current price cannot be justified if we refer to fundamentals alone. It is clear that the draws from inventories that we are seeing aren’t driven by genuine demand. China’s buying spree appears to be slowing down in September after the country…