Oil Strategy Weekly

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The main driver here appears to be the unwind in cyclicals and commodities as we see the brakes pulled in the inflation trade. In this sense, Oil itself tends to be rather immobile. And yet (for OPEC+ still has some vitality although diminishing) it is not rare to find the trigger for this will come in the display of an increase of considerable activity on the supply side!!

From the previous posts and charts, the maps of elasticity are all very clear and we can see ourselves when its time to track for the appropriate shifts in policy.

a) the journey towards the lows via contraction in globalisation

ridethepig | Energy Overbought


b) from the monthly chart

Clashing forces on the supply side


c) the positional yearly flows and blockade at 75

ridethepig | Oil for the Yearly Close


In this simplest of all positions, the blockading of cyclicals and commodities via inflation taking a short holiday; of course the storm will pass and we will see further exploitation of CPI and etc but all of that is not relevant for today's chart. Our highs appear to be set, time for the traditional bow to our boss at 75, greet our colleagues at 70 and head out fresh and rested for a trip towards 68 and 57. The seats are still warm, you have seen the flows here performed again and again.

We are trading elasticity, and the effect on demand and supply as such. No more, no less.
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