- Oil is set for a third weekly gain as demand has been resilient to Omicron and global supply outages persist
- WTI has gained nearly 7% this week
- Kazakhstan’s biggest oil producer has altered output at the giant Tengiz field following protests in the country, while Libyan production has also been hampered (BBG)
- Global supply outages have likely helped oil’s market structure firm in a bullish backwardation structure, signaling growing supply tightness
- Brent’s prompt-timespread has widened to 70c/Bbl as of Thursday. The spread is now most bullish since mid-November.
- EOG Resources is ready to ramp up output as soon as this summer if the market demands it (BBG)
- The company has yet to return to pre-Covid levels of production, but that could change this year under certain macroeconomic conditions, EOG CEO Ezra Yacob said at a virtual conference hosted by Goldman Sachs
- In contrast to EOG, Executives from Diamondback Energy and Devon Energy, also speaking at the conference, said they would need to see a firm nod from shareholders before they’d increase output again