Re: Oil-Notes From Capital One Oil Call.

My friend Lakshmi Sreekumar, who I regard as one of the best macro oil analysts, hosted a private call today. Here are some key points.

OPEC+ meeting “was a shock.” Especially notable: SA’s decision to roll over its voluntary cuts. With 6 months of consecutive supply draws, YE’21 global inventories will be below the OPEC+ "safety stock" target of 2.75B bbls. This has led to serious price spikes in the past.

BUT, the only reason oil is flirting with $70 now is artificially inelastic suppl…