- In this second part, we will take a deep dive into the drivers behind the move in long-dated oil prices and why we think this is just the beginning of a multi-year repricing of the entire forward curve.
- In a nutshell, after the oil crash in early 2020 on the back of the first global Covid19 lockdowns, OPEC+ members agreed on the largest production cuts in history.
- Longer-dated prices have already begun to reflect this future environment. But at $75bbl long-term price, the market is still way too optimistic about future supply.
For further details see:
Long-Term Oil Prices Beginning To Reflect The Coming Oil Shortage - Part 2