While market watchers exclaim there's a crude glut, that excess oil is nowhere to be found, according to Cornerstone Analytics' founder.
The expert argues that oil demand has been understated by most measures for the last couple of years. "Even in the just-ended quarter, global oil demand came in about 1 million barrels a day higher than what the consensus believed," Mike Rothman told CNBC's "Power Lunch."
He contends instead that "oil demand grows this year by 1.8 million a day and non-OPEC supply contracts by 800,000," and added that "there's no way that OPEC fills a 2.6 million hole."
On the other hand, the International Energy Agency released an April report stating that growth in global oil demand is declining around 1.2 million barrels per day. The agency said that global oil supply sank in March 0.3 million barrels per day to 96.1 million barrels per day. Similarly, the IEA said on Thursday that non-OPEC production would fall this year more than it has in previous generations.