Francisco Blanch

The global oil market is running a significant deficit of 14-15 million barrels per day, which is 15% below the level needed for prices to stabilize at $60-70/bbl. This deficit is expected to widen as peak summer demand approaches, leading to higher gas prices and potential availability issues in the US. The supply-demand imbalance supports higher oil prices.

"The US is now a net energy exporter, so any uplift in energy prices is money moving for the most part from New York and California to Texas and Oklahoma and Louisiana." Elevated global energy prices caused by Middle East supply disruptions act as a direct wealth transfer to US energy-producing regions. Domestic exploration and production companies will see significant free cash flow generation without bearing the geopolitical risks of holding physical assets in the Middle East. LONG US energy producers as they capitalize on elevated global oil and gas prices driven by geopolitical premiums. The US government could aggressively release strategic petroleum reserves or waive the Jones Act, artificially suppressing domestic crude prices.

"The US is now a net energy exporter, so any uplift in energy prices is money moving for the most part from New York and California to Texas and Oklahoma and Louisiana." Elevated global energy prices caused by Middle East supply disruptions act as a direct wealth transfer to US energy-producing regions. Domestic exploration and production companies will see significant free cash flow generation without bearing the geopolitical risks of holding physical assets in the Middle East. LONG US energy producers as they capitalize on elevated global oil and gas prices driven by geopolitical premiums. The US government could aggressively release strategic petroleum reserves or waive the Jones Act, artificially suppressing domestic crude prices.

"The US is now a net energy exporter, so any uplift in energy prices is money moving for the most part from New York and California to Texas and Oklahoma and Louisiana." Elevated global energy prices caused by Middle East supply disruptions act as a direct wealth transfer to US energy-producing regions. Domestic exploration and production companies will see significant free cash flow generation without bearing the geopolitical risks of holding physical assets in the Middle East. LONG US energy producers as they capitalize on elevated global oil and gas prices driven by geopolitical premiums. The US government could aggressively release strategic petroleum reserves or waive the Jones Act, artificially suppressing domestic crude prices.