This Chart Will Drive The Oil Story In 2023

The oil market heading into 2023 will be captured in just one chart:

Thanks to the Biden administration's largest US SPR release in history, we have effectively drained 219.69 million bbls in US crude with SPR, gasoline, distillate, and jet fuel since the end of 2021.

While the SPR release did keep a lid on oil prices, it will not be used to the same capacity in 2023 given the lack of political motivation (midterm elections this year).

Unlike 2022, 2023 will have two major tailwinds that will help make the bullish oil story even more bullish.

1. US shale growth is further disappointing to the downside.

2. OPEC+ production cut.