Oil is down, but not out by a longshotOil is down due to the paper market, but that doesn't stop the fundamentals building in it's favour:
1. winter is coming as it does every year
2. SPR to end in about 6 weeks; shorter time if the cave in of the cavern theory starts to occur
3. the emerging market gilded age is still happening and many are looking for energy fuel, so while that may be NG or LNG, it also means oil.
4. OPEC, and its members work to optimize pricing. They will continue to do that and ensure that supply and demand remain favorable to price.
5. O and G capex is woefully behind; luckily there is some cash flow available - we just need more big CEO's like Captain Morgan to recognize that it's not immoral to plan for the short to medium term with oil investments.
6. The pandemic has created a two plus year long demand cycle for hard goods in many sectors, particularly construction materials. We might take a materials consumption breather, but everyone is interested in travel so demand for middle distillates will be firm; hence the oil that makes them.