World’s Biggest Oil Market Sees Over-Supply Risk Amid Delta Rise
- Shale output rising as fuel demand hit by pandemic resurgence
- Crude stockpiles could start rebuilding as production gains
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U.S. shale output is rising again just as a resurgence in Covid cases eats away at driving demand, a sign that the Delta variant is undercutting a rally in the world’s biggest oil consumer.
Gasoline inventories grew last week while a gauge of demand fell as record outbreaks in several states contributed to summer travel demand evaporating faster than usual. At the same time, drillers are pumping the most crude in a year, spurred by a rally in prices from when the pandemic seemed to be under control.