What Stops WTI Crude From Reverting Toward $53? The December WTI crude oil future (Dec26), which becomes front-month just before the midterms, was at roughly $75 a barrel on March 25 and may revert toward $53. Before the closing of the Strait of Hormuz, Dec26 hovered just above US breakeven costs near $55, and domestic production was beginning to wane. Now that prices have spiked, the key headwind may be US abundance. When Dec26 started trading in 2017 around $53 (also the high-volume price area), the US was a net importer of roughly 3 million barrels a day of crude and liquid fuels. Today, net exports are near 3 MMBD. Global crude and natural gas price-maker status has shifted to the Western Hemisphere, with the US driving. Producers may view this price spike as an opportunity to hedge, bring on more supply and delay a typical low-price cure cycle. Full report on the Bloomberg here: https://blinks.bloomberg.com/news/stories/tc3aq7kgzang {BI COMD} #crudeoil #Iran @BBGIntelligence #corn #crudeoil(Mike McGlone)