Add this to the mix, from OilPrice.com:
Tuesday, February 01, 2022
As we have indicated previously, insufficient OPEC+ production combined with a string of supply disruptions across the globe have led to the most bullish market in 8 years, with month-on-month backwardation wider than $1 per barrel throughout most of 2022. For every WTI short position, there were 13 long positions on futures contracts in the week to 25 January, indicating that the anticipation is of further tightness down the line. Soaring long positions also attest to the market’s belief in robust demand going forward - if anything, easing mobility restrictions in several European countries point towards Omicron concerns weakening overall, despite cases hitting all-time records.
OPEC+ stayed with it’s plan to raise production by 400k barrels a day. The problem is, some OPEC countries couldn’t produce their quotas during the prior period so it’s unlikely they’ll make the new slightly higher production figures.
We should have never ceased our oil production and expansion here in the states.