Oil futures show signs of stabilizing after three weeks of declines, settling higher but off the day’s highs.
Recent market concerns with oil on water–oil in transit or in floating storage–have likely been overdone, Amarpreet Singh of Barclays says in a note. He sees much of the increase being the result of rerouting trade flows, rather than pointing to faster onshore inventory builds.
“The latest concerns of an impending large build in inventories is reminiscent of late last year when some market participants expected a large surplus in 2025 even if OPEC+ maintained the voluntary adjustments,” he says.
