Oh, and I just read that OPEC+ fell short their production quota for February by a meaningful 0.8m bbl/day. So, yet another month of not achieving targeted output. I make that 7 misses in the last 8 months.
Every month that this happens lends credibility to the thesis that OPEC+ doesn't have the spare capacity than many energy market watchers think it has.
If this production shortfall continues, with rising global oil demand (government subsidies helping here, remember), we could be at a point before too long when the world is operating at maxed out pumping capacity.
And won't that be a thing?
If that point is reached, every time there is the smallest of supply hiccups (like an operator on one of the rigs in the Permian taking an extended tea break) it will cause more big surges in the oil price.
Popcorn at the ready
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WPL Price at posting:
$30.55 Sentiment: None Disclosure: Held
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