**This is an unpopular opinion, so hear me out and make your own conclusions about this information.**
**Thesis: Taco is partially right.**
**There actually is no oil shortage in the United States.** Inventory levels have continued to rise over the last month even with the Conflict in the Middle East.
There is a **critical** shortage of on-the-water oil in other nations that will cause incredible damage to the world’s economy.
**The US has over 800 million barrels of oil between the SPR and private holders and this number is rising.** We continue to import 4 Mbd of heavy high sulfur Canadian oil that we have invested billions to process and are uniquely set up to receive. This oil flows to us via pipeline, Canada does not have the immediate infrastructure to re-route this oil to other nations.
**Wti (USO / MCL) has run too far too fast.** $110 a barrel for May delivery is too high and will likely fall as ex date approaches. Refiners and gas distributors are making a fortune and the shortages and price hikes in the US are largely fear driven. These prices should not have spiked through the US market so quickly.
**Brent (BNO / BZ) on the other hand is trading at $140 a barrel in the physical markets.** With 25 trading days left on the June contracts these futures prices are likely to sky rocket.
**Positions and Disclosure: I am a retail trader not a financial pro or oil insider.** For at least the next few days/weeks am long Brent and Short WTI.
BFLO-Retail