- Oil prices reached a new seven-year high Tuesday, with WTI trading near $83.50/Bbl
- Oil’s bullish catalysts:
- OPEC+ supply plan to only add 400 MBbl/d per month despite calls for more oil
- OPEC+ as a whole unable to perform to its quota
- Gas-to-oil switching
- Better jet fuel demand
- Overall recovering economies from COVID
- An oil pipeline that for years moved crude from the U.S. Gulf Coast to Midwestern refiners is reversing flows to ship Canadian and Bakken oil to the global market from January (Bloomberg)
- The 632-mile Marathon-owned Capline pipeline will begin sending oil from Patoka, Illinois, to St. James, Louisiana, at an initial rate of just over 100 MBbl/d
- According to a regulatory filing, the company will begin accepting oil to fill the line next Monday