Analysts Probe Mystifying Gap in Global Oil Supply Data

Energy analysts are investigating a significant discrepancy in global oil supply data after warnings in March predicted a major energy crisis would push prices into triple digits. Despite these forecasts, benchmark Brent crude has remained around $83 a barrel, leaving experts unable to account for a massive gap in missing barrels.

Ninepoint Partners LP characterized the supply gap as mystifying, while Unlimited Funds argued that a slump in demand is an unlikely explanation for the missing oil. Potential causes for the discrepancy include inaccurate initial data on stockpiles in the developing world, reduced purchasing by the Government of China, or unexpected leaks in the Strait of Hormuz.

Some analysts warn the market faces a ticking time bomb if hidden reserves are nearly exhausted. This risk is compounded by tanker hesitation to sail due to fears of attack or being marooned. Meanwhile, the Federal government of the United States continues to negotiate deals to unclog Middle East oil supplies as the country approaches congressional midterms.