Our View

An Oil Market in Crisis

 

The oil market is out of balance because planes are not flying and consumers are not driving, which could lead to a unmanageable surplus of jet fuel and gasoline. The solution is to boost output of crude grades with high gasoil yields and shut in shale oil and other light, sweet crudes. Read more here.

Graph of the Week

Our GOTW shows the nearly identical downslides of airlines and energy stocks due to the novel coronavirus impact.

No Place for Shale (March 30, 2020) -- The US shale boom is over. US oil production should quickly decline by three or four million barrels per day as shale wells shut. There is no place for shale in the global oil market. Game over for 2020 and possibly forever.

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