How high for the oil recovery is always an important question given its implications for inflation. At the moment, the oil market has returned to its usual bullishness with all sorts of analysts forecasting a new supercycle:
For me, this is deja vu all over again. There is no doubt that the oil market has tightened with inventories falling in the US:
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The question is why? Demand has recovered through 2020 but it is still very poor. The main reason is that OPEC is holding some 8mb/d off the market.