Apologies for having to do a final comment, but our previous one was shared before finishing the update.
Like many of you have mentioned, a war between Russia and Ukraine could have major effects on Oil, yet just the tensions alone are enough to boost oil prices in this environment. Now if you were long up until now, taking some chips off the table isn't a bad idea, but be aware that the next major target for oil is 115-120 to sweep all the highs and then potentially have a correction down to 75$.
The truth is that the cure for higher prices, are higher prices... however the issue here is that we don't know how high oil prices can get. Will OPEC+ do something? Will the Fed raising rates change something? Will ESG mandates shifting change something? They are all possible. The problem though is that it is very hard for all the right conditions to occur when oil production at this stage is hard (less discoveries etc) and the incentives aren't really align for more output.
On the other hand the pressures on Natural gas seem to have subsided and we believe that in Europe things will improve, even though in the US we could see somewhat higher prices along with Oil. Natural gas in Europe might have one last move up and then slowly lower, while in the US we could see it go sideways for a bit and then start following oil.
On again thanks a lot of reading and we hope you found all this information useful. For more stay tuned for our next ideas. Good luck!