The World Oil Market Is Back

Untimely for Republicans, the world’s oil market is back.

The world oil market will return to a surplus in the fourth quarter of this year, the International Energy Agency said on Friday, as Middle East exports recover faster than global oil demand despite continued attacks on shipping.

The agency also said more volumes would come from a record release of oil from its members’ emergency reserves pledged in March, with 71 million barrels to be made available by the end of February, including 15 million barrels of diesel, to ease market tightness.

Soaring output in Latin America — which is producing around 1.5 million more barrels a day than last year — also contributed to the global glut. The surplus and the US midterm results have pushed crude prices down 20% from this year’s peak, putting Americans “days away from enjoying the cheapest retail gasoline since March,” a leading Bloomberg columnist wrote.

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