The extra supplies mean that “$90 prices look unsustainable,” bank analysts say.
The higher cost of capital has led to lower oil inventories and the possibility of rising prices.
Consumers, already feeling crunched, are in for more pain at the pump.
Last week also saw the most significant addition of outright bearish oil bets since 2016.
Surging prices of oil and other commodities are raising alarm bells everywhere.
Tight supplies of everything from aluminum to oil to grains have sent raw-material prices to a record.
But prices should subside slightly by the end of the year, according to analysts.
“This is a molecule crisis. We're out of everything," he said.
The bank set the stage is set for a multiyear increase in crude oil prices.
The rise isn't limited to raw materials, commodities like beef and palm oil are soaring in value, too.
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