Wealthion · Monday, August 31, 2026
The market is currently experiencing a deficit in oil supply, which has been cushioned by inventory drawdowns from both strategic reserves and private stockpiles. However, once these inventories are depleted, the market will face a genuine shortage, necessitating price increases to reduce demand.
“But once you run out of inventory, you you don't no longer have a deficit, you have a shortage.”
“And and when that happens, the only way that you can ration and and bring things into balance is to have a price increase.”
“and destroy demand.”