JPMorgan Says Global Oil Market Returns to Surplus as Exports Rebound and Demand Weakens

The global crude oil market has shifted back into a supply surplus as recovering exports and sluggish consumption weigh on balances, according to JPMorgan. The bank estimated that the surplus widened to 1.4 million barrels per day (bpd) in October from 1.1 million bpd in September. Middle Eastern crude exports recovered to 20.7 million bpd from a March low of 9.8 million bpd, while Latin American producers added 1.5 million bpd year-on-year. Meanwhile, global demand has fallen by an estimated 3.3 million bpd since conflict-driven disruptions began, pressuring Brent and WTI crude contracts lower by over 2.5%.