– 2Q’17 wasn’t supposed to go like this! Heading into the spring the broad consensus in the oil market was that aggressive global inventory draws would move WTI into the mid $50s and beyond. Unfortunately EIA data failed to deliver the bullish goods despite OPEC compliance near 100% due largely to output gains in the US, Canada, Libya and Nigeria. So here we are, back trading $43 and the physical rebalance + flat price rally narrative that held so much promise has spiraled into a George Costanza’s three month Yankee severance-like state of decay: But it was supposed to be the Summer of George!!! – Where can a market in disarray find support now that the aggressive inventory draw story has at least temporarily lost its fastball? The most potent bullish trend for the market in our view would be a slowdown in U.S. production growth. The EIA sees […]