The Financial Post reports in its Thursday, July 6, edition that one of the biggest caps on energy prices this year is turning into a tailwind for oil bulls. A Bloomberg dispatch to the Post reports that oil's 10-per-cent drop so far in 2023 confounded some analyst and trader expectations of triple-digit prices as China reopened for business following anti-COVID-19 measures. Instead, one of the most aggressive rate-tightening cycles by central banks in decades has created a perceived drag on demand, while simultaneously incentivizing traders to sell oil held in storage. That boosted short-term supply to the market at a time when Russian and Iranian oil exports also ballooned. Now, however, aided by cuts by the Organization of the Petroleum Exporting Countries and its allies, and those same elevated borrowing costs, inventories are showing signs of starting to decline. With the growing cost of money helping to force barrels out of storage tanks, some bulls argue the market is nearing a tipping point. Goldman Sachs Group analysts including Callum Bruce said in a recent note: "A higher cost of capital incentivizes destocking. The destocking ends once inventories reach a new, lower equilibrium."