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KAOBOY MUSINGS and its associated podcast KAOS THEORY focus on the intersection of Financial Markets, Macroeconomics and Geopolitics. I've spent 30+ years as a trader/hedge fund manager and now manage money for my family office across many asset classes.

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Interview: Real Vision with Warren Pies & Jack Farley / Oil.

Why Oil Is About to Enter a Supercycle

Michael Kao

Jul 23, 2021

https://www.realvision.com/why-oil-is-about-to-enter-a-supercycle?utm_source=contributor&utm_medium=referral&utm_campaign=20210804_MKWP_JB_CONT_W1_LINK

Warren Pies, founder and strategist of 3Fourteen Research, and Michael Kao, CEO of Akanthos Capital Management, join Real Vision’s Jack Farley to dive into the implications of the oil futures curve and the bullish case for an imminent super cycle. Both Pies and Kao argue that it is in OPEC’s best interest to keep the oil futures curve in backwardation because they sell into the spot price. In addition, this type of curve creates supply insecurity that Kao believes disincentivizes shale production. Pies sheds light on OPEC’s reasoning on using the curve as a market management tool as they assess Covid’s continued impact on oil demand. Filmed on July 23, 2021.