Inflating Energy, T-Bond Yields vs. Normal Reversion The US government is selling crude oil and buying Treasury bonds, and there's an election in November while inflation is a top issue. Will WTI crude end 2026 at its highest level since 2013, alongside the highest US Treasury 30-year yield since 2001? The political interests of the party in power tilt my bias toward lower prices, and the graphic highlights a top reason: the growing US crude and liquids-fuel surplus near 4 million barrels a day. The pace of oil leaving the Strait of Hormuz is rising, along with Western Hemisphere surpluses and declining demand from China. Since the end of April, the US has released about 120 million barrels from the Strategic Petroleum Reserve. This year's WTI peak near $120 a barrel fits the pattern of lower highs from about $147 in 2008 and $130 in 2022. WTI ended 2022 at about $80, a key year-end threshold. Full report on the Bloomberg here: https://blinks.bloomberg.com/news/stories/tkh2h8n3n09c {BI COMD} #crudeoil #energy #IranWar‌ @BBGIntelligence(Mike McGlone)