Apr. 22 at 9:36 AM
$DVN WTI Nymex futures strips since the Iran War. When the war began (2/27), the front month was at
$67. Yesterday it was
$92. But that's not what moves upstream oil stocks like Dvn. It's when the curve is at its flattest: for example, Dvn reached its 52-week high on March 27th at
$52.1 (black dotted line). That's all you need: not the green dotted line that slopes downward (front month=
$113). Just a flatter curve that approaches zero slope. That will move Dvn to
$50 and above -- the upward shift of the curve toward
$75 for YE 2026, 2027 & 2028. In other words, WTI stays elevated on a prolonged basis than just the next 4-6 months.
