| For all the feverish speculation of OPEC action that’s roiling oil markets, the real reason for crude’s recent recovery probably lies elsewhere. Oil futures have rallied more than 10 percent since the Organization of Petroleum Exporting Countries said it would hold informal talks in Algeria in late September, fueling expectations it could revive a pact on freezing production.
Banks from Citigroup Inc. to Bank of America Merrill Lynch see a simpler explanation for the rebound: the global oil oversupply is finally dissipating. A narrowing discount -- also known as contango -- on immediate supplies of Brent crude is the “clearest indicator” that the two-year glut is fading, Credit Suisse Group AG said...............................................Full Article: Source
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