The World Is Out of Spare Capacity

The world doesn't have enough spare capacity to increase production at all from where we already are. That means it's not possible to return to pre pandemic normal because there's not enough energy to supply the demand that existed in pre pandemicnormal. The commodity markets don't work that way, they have to balance supply and demand in the here and now. In the here andnow, demand is starting to collapse. There's plenty of room for oil prices to move considerably lower from here with a really big caviot if vladimir putton should ever decide he wants to use withholding energy as a tactic of economic warfare.