Phil Flynn is writer of The Energy Report, a daily market commentary discussing oil, the Middle East, American government, economics, and their effects on the world's energies markets, as well as other commodity markets. Contact Mr. Flynn at (888) 264-5665
It is the oldest story in the commodity world, supply versus demand. Yet that story now has been more complicated than perhaps ever as Covid-19 concerns about demand destruction temporarily and possibly permanent puts tightened global supply on the back burner. Global oil supplies tighten at an incredible pace, yet fears that the demand recovery will falter, flipping us back to an oversupplied market, is keeping prices anchored. We had a massive supply drop in crude oil, gasoline and distillate as reported by the Energy Information Administration (EIA) that was caused in large part by Hurricane Delta. Still, it may cause some people to miss the larger trend of tightening national and international supplies.