Tank·Bottom
BRENT FRONT-MONTH · 07 MAY 2026 · $102.00
Ten supply-shock analogs · Brent front-month · July 2026 thesis

What a Brent
supply-shock peak
looks like.

Ten modern commodity squeezes — crude, gas, precious metals, critical minerals, and the COVID-2020 demand collapse used as an inverted analog — cropped to day −60 through day +60 around each local peak, normalized, and overlaid. The composite trace is what the tape has historically walked when supply got tight. The second tab converts the resulting peak distribution into an actual position.

Brent · YTD
Implied Peak (analogs)
weighted · 10 analogs
Implied Peak (deficit)
10.5% × historical ratio
D+60 drawdown
consensus path
scroll · the analogs
01 · Method

Ten analogs, one peak-aligned shape.

Each analog is normalized to its own peak and aligned on a single axis — day −60 through day +60, daily closes only. Weights favor (a) liquid markets, (b) prior oil shocks, and (c) recent cycles over distant ones.

i.

Genuine supply constraint

Pure financial squeezes excluded where possible. The bias is toward physical scarcity: civil wars, sanctions, mill outages, storage stress.

ii.

Liquidity matters

Brent and silver markets clear differently than rice or potash. Heavier weight goes to the deep, well-arbitraged contracts that mirror the Brent microstructure.

iii.

Recency over distance

2022 trades at HFT-with-LLM-overlay tempo. 2008 did not. Recent cycles get amplified weight; the 2008 spike is referenced more than imitated.

02 · Analogs

The ten tapes.

Each card crops the closing-price tape to the 120-day window centered on the local peak. Weight bars indicate the contribution to the consensus path below.

03 · Composite

Aligned and overlaid.

Faded lines are the individual analogs, normalized to their peak. The bold trace is the probability-weighted mean; the shaded band is the 10th–90th percentile envelope at each offset. Click a chip to highlight an analog's contribution.

Peak-aligned price action · day−60 to day+60

weighted mean
p10–p90 band
analog tape
Mean rally to peak+20.9%
D+30 drawdown−17.5%
D+60 drawdown−22.2%
Worst-quartile floor−47.3%
04 · Brent · July 2026

Composite, scaled to today's Brent regime.

The composite path projected forward from today's spot, anchored to an analog-mean peak. The cone is the 10th–90th percentile envelope across analogs — the shape distribution, not a point forecast. Hover to read individual dates.

An implied $174 Brent peak, then a roughly twenty-five percent forty-five-day mean reversion.
spot · 102.00 · 07 May 2026
peak · $174 · (analog mean)
D+60 · ·
05 · Supply-deficit ratio

Rally per percent of barrels removed.

The modern analog set captures shape and small-deficit shock magnitude. To extrapolate to today's 10.5% adjusted deficit, we look at pre-2008 oil shocks — each pairing a measurable removal of global barrels with the 60-day pre-peak rally that followed.

Mean rally / deficit ratio
Today's adjusted deficit
10.5%
Pre-war Brent baseline
$60
Implied peak · mean
Lower bound (p25)
Upper bound (p75)
06 · Cycle position

Where today sits on the pre-peak curve.

The analog shape places the typical D−60 print at ~68% of peak. For each deficit-implied peak scenario, we solve for the offset where today's $102 spot lands on that curve — the further below peak today is, the further out the peak.

Brent $ COIL · $107
Real BNO chain · Jul 17 / Oct 16 '26 · Jan 15 '27

Price path (Brent $/bbl)

drag peak to reshape
Peak$175
DateAug 01 '26
Return+64%
Deterministic MC median p10 (crash)

Configuration

live
Risk tolerance50
Balanced. 50% safe · 35% medium · 15% convex.
Base IV42%
ATM front-month IV. Real BNO IVs override this on the BNO toggle; COIL uses Black-76 calibrated to the same surface.
Crash sensitivity1.0×
Jump intensity scaling above Brent $120.
Crash magnitude−30%
Single-day drawdown if the jump fires.
Capital$10,000
Total budget across all three buckets.
Monte Carlo paths300
Higher = smoother distributions, slower compute.

Monte Carlo fan

— paths
Median peak
p90 peak
Crash prob.
Avg crashes/path

Terminal P&L distribution

blended portfolio
P(profit)
P(max loss)

Portfolio allocation

three sleeves · risk-tol weighted
Capital deployed
Total max upside
Blended E[PnL]
Blended p10
Strikes shown in COIL terms — thesis anchored to Brent $175/bbl.
Safe 50%
Debit
Max reward
R:R
E[PnL]
p10
Contracts
Medium 35%
Debit
Max reward
R:R
E[PnL]
p10
Contracts
Convex 15%
Debit
Max reward
R:R
E[PnL]
p10
Contracts
Awaiting optimization.

Top candidates · per bucket

strike grid sorted by bucket score
BucketStructExpiry K_LK_SWidth DebitR:RE[PnL]p10Score
∴ Black-76 · mean-reverting GBM with target-tracking drift · compound Poisson jumps · per-bucket scoring · real BNO chain via EODHD