Why Oil Is About to Enter a Supercycle

Published on
August 4th, 2021
Duration
61 minutes


Why Oil Is About to Enter a Supercycle

The Interview ·
Featuring Warren Pies, Michael Kao, and Jack Farley

Published on: August 4th, 2021 • Duration: 61 minutes

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.