Oil Supply/Demand Imbalance

| Multi-Actifs | Market Charts

20211004 COTD x Oil Supply and Demand Imbalance - chart website

Source: Bloomberg, Unigestion, as of 30.09.2021.

Crude oil is the energy asset class with the largest impact on the consumer and the economy, central to many industries and the world’s most important energy source. Its supply/demand balance is therefore central to the recent rally. Following the reopening of world economies post pandemic, oil demand has been strong and started to deplete inventories. This can clearly be seen in Department of Energy (DoE) total crude oil inventories, which are now back towards their 2018 lows and down 22% from their pandemic peaks.

The recent hurricane Ida also paralysed the Gulf of Mexico and its oil production, further adding to the bullish rhetoric for oil and gas. Just under 1.5 million barrels of oil and 1.7 billion cubic feet of natural gas come out of the Gulf every day. Although production has restarted, some oil companies have already announced that some of their platforms will not be operational until next year due to the damaged incurred.


Important Information

The information and data presented in this page may discuss general market activity or industry trends but is not intended to be relied upon as a forecast, research or investment advice. It is not a financial promotion and represents no offer, solicitation or recommendation of any kind, to invest in the strategies or in the investment vehicles it refers to. Some of the investment strategies described or alluded to herein may be construed as high risk and not readily realisable investments, which may experience substantial and sudden losses including total loss of investment.

The investment views, economic and market opinions or analysis expressed in this page present Unigestion’s judgement as at the date of publication without regard to the date on which you may access the information. There is no guarantee that these views and opinions expressed will be correct nor do they purport to be a complete description of the securities, markets and developments referred to in it. All information provided here is subject to change without notice. To the extent that this page contains statements about the future, such statements are forward-looking and subject to a number of risks and uncertainties, including, but not limited to, the impact of competitive products, market acceptance risks and other risks.

Data and graphical information herein are for information only and may have been derived from third party sources. Although we believe that the information obtained from public and third party sources to be reliable, we have not independently verified it and we therefore cannot guarantee its accuracy or completeness. As a result, no representation or warranty, expressed or implied, is or will be made by Unigestion in this respect and no responsibility or liability is or will be accepted. Unless otherwise stated, source is Unigestion.

Past performance is not a guide to future performance. All investments contain risks, including total loss for the investor.