Oil shot up to $90/barrel as OPEC+ leaders, mainly Saudi Arabia and Russia, extended supply cuts. They're keeping 1 million fewer barrels per day on the market for another three months. This could nearly double the expected supply shortage for year-end according to the IEA.
Bad timing, too. Summer saw record global oil demand, driven by air travel and China's consumption. Meanwhile, U.S. oil reserves are at a 40-year low. Unlike last year, when the U.S. tapped reserves to offset Russia's Ukraine invasion, there's no quick fix this time.
GRIT TAKE: In 2008, oil soared to $140/barrel with U.S. reserves full and a financial crisis underway. Now? Low reserves, sky-high demand, and inflation haunting us. And guess what? Gas prices are climbing again. Now higher than at this time last year and the second-highest on record for this time of year going back to 1994. Upside? Potentially big. We're bullish on energy stocks.