This obsession with a balanced market flies in the face of everything we think we know about market economics. A balanced market is a dead market – even in a longterm market environment and shale made oil a much more volatile affair. Imagine the oil market would remain at USD 30 for 5 years? That would be perfectly balanced – I doubt that producers would be happy with this though. Stop trying to herd cats and be better competition.
Excess petroleum inventories are being absorbed as lower prices compel U.S. shale producers and the members of OPEC+ to limit their output, confirming the market is on course to rebalance in 2021.