Oil price - Kriss Kross will make you jump, jump
The oil supply and demand lines have criss-crossed for the first time in 2 1/2 years. With demand back in harmony with supply, oil inventories have probably peaked, helping oil prices 'jump jump'.
"Jump Jump - Kriss Kross will make ya."
I'm not sure how many of you remember this catchy ditty from 1992.
The debut single from a couple of 12 and 13-year old boys topped the US charts and was number two in the UK. I just found out my good friend Lars Kreckel saw them live! I'm very jealous! Not that he saw THEM live. But they were a warm-up band for the King of Pop Michael Jackson.
Why am I writing about them? Well I was inspired after updating the chart below on the oil market. The demand and supply lines have criss-crossed for the first time in 2½ years. Oil demand is now back in line with oil supply. This suggests the glut of inventories should stop building up and explains the recent ‘jump jump’ in oil prices.
Supply in May was disrupted by Canadian wildfires (worth 0.7m barrels per day). But the upward trend in demand means supply and demand should remain in harmony in the coming months, underpinning oil prices.