Oil prices sold off hard after a Russian diplomat claimed there was a significant breakthrough in world power and Iranian nuclear talks, and that a major announcement was going to happen today. Later on, the envoy said that he was confused or taken out of context.
Gasoline shortages are slowly starting to ease and we’re seeing panic subside as the Colonial Pipeline is getting back to full speed. While many stations are still dry, the surge of people with full gas tanks is reducing demand.
The hack attack on the Colonial Pipeline is entering day 5 and is already causing some spot shortages of gasoline on the East Coast, as they’re losing 1.25 million barrels of gasoline per day. Airports are also reporting shortages of jet fuel which could impact flight schedules.
While the cyberattack may have a short-term impact on the price of crude oil and gasoline, assuming they can bring the pipeline back online quickly, we can't ignore the fact that this attack, along with others like it, is a major national security threat.
The reopening trade in the U.S. and around the globe has Brent Crude within a hair of $70.00 per barrel as the supply side for oil will start to get tighter. U.S. refinery capacity is lower, as well.
Supply chain issues are creeping into sectors across the commodity space, as a scarcity of supply suggests that the supercycle call that we’ve long anticipated is finally here.
Demand fears are still holding back the crude oil market, along with the prospect of a deal to get Iranian oil back on the market. Drone attacks on Saudi oil fields suggest that Iran is still not worthy of having sanctions lifted.
OPEC+ has skipped all the drama and decided to follow through on a gradual increase in production because, despite the hit from another wave of Covid-19 in India, the reopening trade is getting harder for oil traders and OPEC+ to ignore.
India’s Covid-19 nightmare is impacting oil prices and may cause OPEC+ to cut back production of oil instead of standing pat. The tales of human suffering from India are heartbreaking and hospitals are turning patients away as new cases of Covid-19 are breaking records. 
Just as oil looked poised to break out and run, Covid-19 realities sunk in as demand fear started to raise its ugly head. A surge in cases in India and an announcement that Prime Minister Modi was going to give a speech addressing the issue caused oil bulls to panic.