The bulls are out in force in the oil market. The price of black gold has drifted above $55 a barrel, the highest in 18 months. And pretty much everyone seems to think it will keep rising. In the US, futures traders have not been this bullish on oil prices for ten years. The trouble, however, is that “market fundamentals have yet to catch up” with traders’ optimism, says Georgi Kantchev in The Wall Street Journal.
Bulls point to reports claiming that last year’s deal by Opec on production cuts has been broadly successful, with [...]