ITPM Flash Ep103 Leveraging the Offshore Supercycle $RIG
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ITPM Flash Ep103 Leveraging the Offshore Supercycle $RIG
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About this listen
ITPM Flash provides insight into what professional traders are thinking about in the markets RIGHT NOW!
Industrial data is beginning to re-accelerate, and energy markets are taking notice.
In this ITPM Flash, Philip Klien examines the early signs of a potential offshore supercycle. The ISM Manufacturing index has moved back into expansion, with new orders leading the move higher — a signal that industrial demand may be turning. Crude has already strengthened year to date, but the more important shift may be happening in offshore supply.
Ultra-deepwater drillships are expensive, time-consuming to build, and new capacity is limited. As day rates rise through key thresholds, operating leverage increases sharply. At the same time, Transocean's all-stock acquisition of Valaris tightens industry supply further while improving balance sheet quality.
This episode breaks down the macro inflection, the structural supply constraints, and why consolidation may amplify pricing power — alongside the execution and regulatory risks traders need to consider.
If industrial momentum holds, offshore could move from recovery to repricing and $RIG is the leveraged play.