The Largest Energy Supply Shock on Record

The IEA has characterized the current Middle East crisis as the most significant supply shock in history. While non-OPEC production is at record highs, it cannot immediately replace the 5-7 million barrels per day currently shut-in.

SPR Liquidity Injection

A massive 400-million-barrel SPR release is intended to bridge the supply gap through Q2. However, traders are increasingly skeptical that this liquidity will be enough to lower prices if the diplomatic deadlock persists.