Oil hits troubled waters

Goldman Sachs calculates that for the first time this year demand for oil will outstrip the world’s capacity to refine and distribute it. Benoit de Vitry, head of commodities at Barclays Capital, said: “The oil system has cracked. There is a lack of refinery and distribution capacity. The spare capacity is now down to 1 million barrels a day. People are not worried about having their meal on the table today, but fears are growing about the future.”

TA