Don't Conflate Seasonality In The Oil Market With Rebalancing (Video)

Includes: USO
by: EconMatters

Price doesn't equate to a market being in balance, and seasonality has a drawing and a building season in the oil market. A market being in balance means supplies are stagnant - not going up or down. Total supplies are still going up during the drawing season. Therefore, the oil market is still in surplus mode, and is not rebalancing.