- Crude oil in the U.S. jumped over $81/Bbl Monday morning as oil demand gets a boost from global power crunch
- Prices of power fuel sources like coal and natural gas are soaring in Europe and Asia, prompting a switch to oil products such as diesel and kerosene (Bloomberg)
- Permian oil output is expected to return to pre-pandemic highs within weeks
- The increase in Permian output is being driven by private operators rather than the publicly traded companies that powered previous booms (Bloomberg)
- At almost 5 MMBbl/d, the Permian basin is just shy of levels seen right before COVID-19 hit in the spring of 2020
- Other major U.S. shale basins are either holding steady or declining, according to BloombergNEF
- WTI spread positions held by speculators and other reportable traders surged by the most since March 2020 through last Tuesday (CFTC)
- Managed money spread positions rose by 51k lots
- WTI “other reportable” spread positions climbed by 72k lots
- Oil’s steep backwardation has invited bets on oil spreads