Shale Giant Diamondback Says Threat of Oil Glut Is Receding

Fears of a global oil glut that had been expected to crater crude prices are fading amid resilient energy demand, according to Permian Basin driller Diamondback Energy Inc.

As recently as mid-December, the prevailing outlook among respected oil watchers was that a huge surfeit was in the making that would send crude prices tumbling. Everyone from the International Energy Agency to prominent trading houses such as Trafigura Group were warning of dark days ahead as supplies overwhelmed demand.

But the specter of too much crude has failed to materialize, Diamondback Chief Executive Officer Kaes Van’t Hof wrote in a letter ...