Oil markets remain in equilibrium

Buyers moved in as the price fell, but the IEA is forecasting the length to continue for at least another year

After a relatively stable month in September, crude prices rallied in early October on expectations of lower US production and rising tension in the Middle East. But by mid-October they had started to slide after the US government reported a larger-than-expected crude stockpile build. The stock surge was a result of lower refining runs as US refiners shut for maintenance after the peak summer driving season. As Petroleum Economist went to press, Brent was trading at $49.44/barrel, while WTI was lower at $46/b. A projected marked slowdown in demand growth next year and the anticipated arrival of additional Iranian barrels – should international sanctioned be eased – are likely to keep the mar