An Oil Supply Deficit Is Looming, And Traders Couldn’t Care Less

When Saudi Arabia announced at the June OPEC meeting that it will reduce its oil production by 1 million barrels daily, traders basically brushed it off. When it announced it would extend these cuts through August, with Russia saying it would cut its oil exports by half a million barrels daily, traders brushed that off, too.  Analysts have been warning that a supply crunch was on the way but again, market players have largely ignored these warnings. Now, the warning signs are flashing brighter. The International Energy Agency, which is not…