Markets are not always rational, but the world is still producing more oil than it consumes, which argues for lower oil prices sooner or later. From Art Berman, on a guest post at theburningplatform.com:
Lately, oil prices have gone up when they should have gone down. In the last week, OPEC decided not to cut production and the two major energy agencies reported that the world over-supply problem is getting worse. Brent futures increased from $62 to $65. Bad is the new good.
The expected bad news on Friday, June 5 that OPEC would not cut production was skillfully cloaked in positive statements about growing demand. On Monday, June 8, Brent opened at $62.69 and rose to $65.70 over the next two days.
On Tuesday, June 10, the EIA published its monthly Short-Term Energy Outlook (STEO) that showed that the production surplus responsible for low oil prices had increased in May to almost 3 million barrels per day (bpd).
http://www.theburningplatform.com/2015/06/14/for-oil-price-bad-is-the-new-good/
To continue reading, and for some enlightening graphs: For Oil Price, Bad Is The New Good
The world is still producing more oil than it consumes, you mean
Good editors are so hard to find.