A Confluence of Oil Trends: Setting Up for Another Rally
Summary:
While many in the oil market believe a possible plateau in Permian oil production is a 2025-26 story, I believe this is closer to happening here in the coming months.
Global counterseasonal 1Q draws and tightening timespreads are showing physical preconditions of an oil rally for the fourth time since the Ukraine invasion.
These developments will not make the Fed’s life any easier in coming months.