A JP Morgan analyst on oil ahead, forecasting a year-end target of $86/barrel:
- the sharp price rise has resulted in “Demand destruction has begun (again)”
- (northern) summer driving season coming to a close
- “global oil stock draws have ended”
- “Preliminary satellite stock observations from Platts suggest that during the first three weeks of September, global commercial crude inventories declined 8 million barrels, while the world’s oil product stocks surged 38 million barrels, for a net build in total commercial oil liquids of 30 million barrels”
- expects inventories to build up heading into winter
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I know, it would have been more helpful to have this note before this:
This from earlier: