New York and London oil futures are sending very different signals to market players about the state of global supply balances, with U.S. contracts weak even as physical crude markets rally and London prices indicate tightening supply. The divergence in the two benchmarks is one that is puzzling some oil traders. The signals are key to determining whether the Organization of Petroleum Exporting Countries’ goal to rebalance markets by reining in supply is working. Global marker Brent’s strength reflects tighter supplies due to those cuts. Yet the opposite appears true in the U.S. market, which continues to signal large oversupply. Hurricane Harvey exacerbated the excess of domestic supply by forcing the closure of nearly 25 percent of U.S. refining capacity and half a dozen […]