An inverted US Treasury bond yield curve. China’s industrial growth at a 17-year low. Negative German GDP growth.

These headlines have roused fears the global economy is slipping into recession.

A decline in US crude inventories has narrowed the price discount of the US crude benchmark (WTI) versus the global crude benchmark (Brent) to its lowest level in more than a year.

Increasing volumes of US crude leaving from Gulf Coast ports to refineries abroad have drained inventories in Texas and Louisiana, and pulled barrels via pipeline from the Cushing, Oklahoma storage hub.

This trend should continue.

China’s oil-buying prowess returned in a major way last month when crude imports set an all-time high.

But what’s behind the surge? Strong refinery demand? Or opportunistic buying of Iranian crude?