The US is officially the largest oil producer in the world, and it's not even close.
Currently, the US is producing 12.9 million barrels per day of crude oil. This is nearly 30% more than the 10.1 million barrels per day that Russia produces and 33% more than Saudi Arabia. In fact, the US alone pumps 45% of the output produced by the entire OPEC combined. Furthermore, the US now produces nearly 4 TIMES as much oil as Brazil. Source: The Kobeissi Letter, Apollo
Do you remember 4 years ago ???
Source: CNBC
BREAKING: US oil futures surge above $85/barrel after reports of a retaliatory strike by Israel in Iran.
Iran has just suspended all flights to Tehran, Isfahan and Shiraz. Stock market futures are down nearly 1% on the news. Source: The Kobeissi Letter
Oil prices are now down nearly 10% from their highs as fears over higher interest rate policy spread.
With markets now seeing less than 2 rate cuts in 2024, demand outlook is questionable. This has put oil prices at their lowest level since March 28th. However, prices are still up more than 15% from their February 2024 lows. Source: The Kobeissi Letter
Will the big deflationary wave out of China offset the inflationary pressures stemming from rising oil prices and hot job market in the US?
Source: Michel A.Arouet
Looks like saudi arabia's balance of payments breakeven oil price (oil price that avoids a current account deficit) is now close to $85 a barrel...
This could explain why there is some scale back from NEOM + the need for oil prices to stay higher for longer... Source: Brad Setser
Oil-related stocks are cooking now!
Exxon $XOM, Conocophillips $COP, and Hess $HES have all formed Golden Crosses Source: Barchart
Below the relative chart of oil ETF $USO vs. S&P 500 ETF $SPY and the relative chart of oil stocks XLE vs. S&P 500 ETF $SPY.
Both just hit a 4.month relative high Source: J-C Parets
