Flashing back to our Economics 101 classes, we know that, all else equal, a shortage of supply relative to demand will lead to rising prices. We’re see a textbook example of that phenomenon right now in the oil market, which the IEA recently estimated was structurally undersupplied by 1.2M bpd. That imbalance may moderate as we move into October and China reins back on building inventories, but regardless, demand remains robust despite signs of a slowing economy, and supply is tight in the current environment. The above fundamental backdrop is of great interest to crude oil traders of course, but if you’re trading ... (full story)