Oil Bulls Charge Ahead as Prices Rise in Backwardation

The OPEC+ decision to cut production by an additional 1.6 million bpd from May through to the end of the year has sent oil prices soaring, with the largest intraday increase since a previous OPEC+ production curb deal back in October 2022. While some are warning of significant demand problems going forward, oil bulls are very much in control. Meanwhile, US natural gas prices are at the lowest levels in almost 3 years due to mild weather and the oil industry’s drilling spree, with associated gas accounting for roughly a third of natural gas output. In M&A news, Qatar’s NOC QatarEnergy agreed to buy a 40% stake in Shell’s C-10 block located offshore Mauritania, while the UK trade union Unite announced the first strike of its North Sea contract workers starting April 5 as it demands better pay and work conditions, impacting output at platforms operated by Shell, Harbour Energy, and APA.