The Oil Market Could Be Weeks From a Breaking Point

Three and a half months after the blocked Strait of Hormuz created the worst oil supply disruption in history, oil prices remain below $100 per barrel amid hopes of an imminent U.S.-Iran deal. It’s not only hopes that have been keeping prices much lower than a sudden disappearance of 13 million barrels per day (bpd) of supply would warrant. The market has had major buffers to rely on. China, the world’s top crude importer, slashed imports to multi-year lows, while the U.S. boosted its crude exports to a record high. Strategic releases…