Major Near-Term Uncertainties
World demand remains strong, and winter is the
world high demand season
OPEC cannot control the market since it has little
or no spare capacity
Geopolitical unrest continues to cause crude oil
Hurricanes created a temporary gap in U.S.
High refinery utilizations slow product
Timing to a more balanced market is highly
The near term future is highly uncertain.
We are seeing an unusual tight world market where even OPEC does not have control over the situation with little surplus production capacity.
Given the geopolitical unrest that exists, we continue to be subject to unexpected supply disruptions.
The United States is going into the winter season with a supply gap caused by a devastating string of hurricanes.
And even when the tight market begins to ease, high demand and high refinery utilization worldwide prevents the market from rebalancing quickly.
In summary, timing to a more balanced market is highly uncertain.