Bloomberg Surveillance · Friday, July 17, 2026
Analysts warn of an 'illusion of abundance' in the energy market, citing severe supply constraints and underinvestment. Crack spreads are at record highs, indicating a shortage rather than a deficit, with geopolitical risks in the Middle East and disruptions in Russia exacerbating the situation.
“The entire energy complex remains underinvested, making the system extremely vulnerable to shocks like these.”
“The crack spreads this morning are seventy dollars a barrel. That means the spread between oil and products is nearly the same price of koodle. I've never seen it that high in my entire career of over three decades. That's telling you this is no longer a question of deficit. This is now a question of shortage, and people are asking where do you hide with what's going on in tech?”
“I have never seen an energy environment this type. Yet the world still focuses on tech that I think is poised for a big correction, and you have the best performing asset class out there being ignored, Jeff.”