Christmas in JulyIt is plane to see that Omicron is over and further Covid waves with it. Air travel will be returning big time and that means increased jet fuel consumption. Jet fuel comes out of the distillate pool, which means less heating oil build up . That can only mean one thing more petroleum consumption. Mostly crude but also some nat gas (remember the substitution this year in Europe of heating oils for nat gas )
How big an effect will all this be ? Probably huge. By July all surplus crude production will have disappeared and prices will be soaring. Will the Americans come to the rescue ? Hardly, they have used up most of their useful DUC s and the hard work of shale drilling and offshore drilling will need to begin. You cannot build an offshore rig too fast .You could ask BP about that !!