Welcome to a tight quarter edition of Oil Markets Daily!
Global oil inventories continue to counter-seasonally decline especially in refinery maintenance-heavy month like October.
Total oil stock inventories dropped 4.5 mbbls globally last week and what's going to be more staggering going forward is that we are just starting to see the global inventory decline accelerate.
Source: EIA, HFI Research
For a while now, we know based on the storage based oil price model that oil prices are trading at a discount to fair value. For physical oil traders, the flat price versus the timespreads