Oil Prices: Single Trading Firm Is Fueling Runup in Physical Crude

The video discusses the recent price rally in the US physical crude market, driven by trading tactics linked to Total Energies. This has made US crude more expensive for Asian and European buyers, especially as OPEC+ reduces supply. The market is experiencing price dislocations and backwardation, suggesting a potential short-term turning point. However, supply cuts by OPEC+ and high demand, particularly from China, are expected to tighten the market towards the year's end. Economic risks remain a concern for producers and traders.

Discuss the relationship between oil demand in China and the global oil market.

What risks do producers and traders face regarding the tightening of the oil market?