Monday Macro View: How does Frac Job Count explain the divergence between global and U.S. inventories?

There’s been no shortage of confusion around oil markets this year. Depending on who you follow, inventories are either ballooning or vanishing. OPEC+ recently increased their production by 582,000 bpd citing low inventories as one of the reasons. Prices, however, do not correspond to such tightening – if there is any. The most important issue is that there is a divergence between inventories when it comes to the U.S. and the world. So, we decided to break it down for our readers and use our Frac Job Count to explain why inventories are low in the U.S. while rising globally.