World Market Not Awash in Oil

World Market Not Awash  in OilWorld Market Not Awash  in Oil

Andy Hall, one of the best-known oil traders who is bullish on prices, said the decline in the oil market is not a repeat of 1998 or 2008. The absence of “extreme contango,” which occurs when commodities prices close to delivery are cheaper than those to be delivered at later dates, suggests that “the world, whilst moderately oversupplied, is not awash in oil,” Hall said in a letter to investors, Bloomberg reported. He expected to see a decline in production forecasts by the International Energy Agency. There is probably more than 200 million barrels of crude oil storage capacity still available, Hall said in the letter. Brent crude, the benchmark for about half the world’s oil, fell 1.1% to $50.10 a barrel on the London-based ICE Futures Europe exchange.