The oil industry’s inroads to cutting supply are “dwarfed by the by the cuts that we’ve seen in demand,” even as states have re-opened their economies amid the pandemic, says one oil expert.
“We’re still running a surplus in supply,” Stephen Schork, The Schork Report Editor told Yahoo Finance.
“There simply is not enough demand,” he added.
Concerns about an uptick in coronavirus cases and an inventory buildup sent oil prices lower on Wednesday. U.S. crude stockpiles increased by a higher-than-expected 1.4 million barrels last week, according to data from the Energy Information Administration (EIA).
“What really scared the market with today’s EIA report, is that we saw a significant rebound in crude oil production on the domestic side,” said Schork.
What’s worse, says Schork, is that the U.S. is technically already in peak driving season.
“We’re only looking at maybe 8 or 9 more weeks of peak demand, and