The Energy Report: No More Glut – Investing.com

  • Date: 25-Jun-2021
  • Source: Investing.com
  • Sector:Oil & Gas
  • Country:Gulf
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The Energy Report: No More Glut – Investing.com

Do you remember the oil glut? Oh, sure you do. The COVID-inspired oil glut that many people said was so large that we would never see it fully disappear. Just one year later, supplies of are falling at the fastest pace they have since the pre-COVID-19 days.

Now there are concerns that there will not be enough oil around to meet growing demand. The under investment in fossil fuels is starting to rear its ugly head as demand is mounting a comeback faster than supplies can keep up. We are seeing production fall as there is not enough new drilling to offset the decline rate from existing wells.

Those concerns were magnified when the Energy Information Administration (EIA) released their weekly report that showed fell by 7.6 million barrels last week.