The June oil contract rolled off today at $113.23, up $1.02 to close it out.

The volume and speculative trading is all in July now but that was higher as well, up $43-cents to $110.23.

I feel like I’m beating a dead horse at this point but the resilience in oil is unprecedented. At virtually any other time in history if you had one of the worst stretches for stocks coupled with widespread economic angst, you’d see oil underperforming. Instead, it’s not only outperformed, but it’s made gains. Oil is up 10% in the past four weeks. This is the first close above $110 since March 25.

I keep waiting for this shoe to drop as the mood out there worsens but it’s just not happening. Now there’s talk about Shanghai reopening and at some point stocks need to at least bounce.

It’s increasingly clear that there just isn’t enough supply. I fear how high prices could go, particularly if predictions of Russia losing 3 million barrels per day come true.

The problem for the larger market is that oil spending is taking up a larger share of the wallet. This is data from JPM. Gasoline prices have risen every day since April 26.

oil spending

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