NRGD - Supply Disruption Meets Demand Destruction In Oil

Taking A Closer Look at Oil

Oil is on the downtrend this summer for several reasons. The first is the sheer oversupply of oil. The U.S. Energy Information Administration data on June 12th of 2019 showed that total oil inventory stocks were at their highest levels since the middle of 2017, a clear sign that supply is outstripping demand. The EIA forecasted lower crude oil prices, noting that expected inventory declines created forecasting uncertainty.

Source: EIA

However, that report was published the day before the tankers in the Strait of Hormuz were torpedoed on

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