End-of-Quarter Rebalance in Focus Amid Short Week

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Our View

I think this is a great story, as OPEC and Putin slash oil production and make oil production cuts. The USA is now producing more oil and gas than any nation ever has — the numbers are record breaking oil production. It is sweet revenge for Putin pushing the Saudis to cut oil production.

The other added positive is India, who is Russia's largest oil buyer, ramped up its purchases of US crude oil amid tighter enforcement of sanctions on Russian supplies. More than 250,000 barrels per day of US crude are set to arrive in India next month, the highest in more than a year.

When you add it all up, higher oil prices are not going down anytime soon — nor will it help the Fed lower rates.