Oil Prices Unfazed Despite North Dakota Drop and Middle East Tensions Due to Ample Global Supply
• Crude oil production in North Dakota fell by 650,000 to 700,000 bpd recently, but global oil prices were unaffected.
• The escalating conflict in the Middle East is having little impact on oil prices despite potential for major supply disruption.
• Oil markets believe there is plenty of spare and new supply set to come online to meet demand.
• China just reported a record refinery throughput rate for 2023 yet oil prices are not moving up.
• OPEC and allies have over 4 million barrels per day of spare capacity but are reducing output instead of using it to offset potential disruptions.