Oil Markets Are Tighter Than They Look

The global oil market has entered a period of increasing volatility, with unpredictable supply, deceptive demand signals, and factors such as geopolitical uncertainty and souring economic sentiment all tugging at prices. Crude flat prices have been somewhat volatile but have on the whole suffered over the last month or two. Diesel timespreads (or “spreads”), which measure the physical need either to store barrels or release barrels from storage, have historically been a reliable indicator of broader market trends and of economic growth.…