went to 103 but failed creating even stronger resistance now
I really feel natural gas/with pipelines to lpg is the place to invest in energy atm and probably for the foreseeable future.
Obvious reasons
Short term-Russian supply near stopped .lpg input terminals completed and being built-3 new constructions even for Germany.
Long-term-natural gas is the clean transition fuel
IMHO we are presently in a major Bear TRAP ... this won't last past NOV certainly DEC at the latest till OIL surges back over $100WTi
2023-24 OIL will make new record highs and stay high ..
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
Strategic Petroleum Reserve release today at 8.4mb - largest release ever and is now at the lowest level since Oct 1984.....
Just think when they have to rebuild the SPR ...and we have China coming back to full demand .... many Asian nations are consuming more Oil than pre covid 2019!!
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
US Government decided to tap the Strategic Reserve drawing about a million barrles per day. Since March
▪︎The plan was US Oil Production would rise by 1.5 Million to 2 Million Barrels per day when the draw ends. Production rose by just 300,000 total. Or about 15% of the planned increase.
▪︎The Draw which equated to 12% of USA daily supply ends next month.[/COLOR]
▪︎The 170 million barrels drawn- needs to be topped back up. Meaning the USA Government will be competing to buy Oil from other buyers in the open market.[/COLOR]
▪︎The latest half baked idea out today- they won't buy the oil till its in the $80s. Even though the market knows they need to buy the oil. 170 Million barrels worth.[/COLOR]
How this is not understood is even more troubling than the stupid idea of drawing Oil from Reserve and telling Oil Companies they will be obsolete.[/COLOR]
This is correct and one of the dumbest examples of bait and switch that we have seen in years. They managed to keep the commercial inventories roughly flat for 12 months while depleting the SPR. Once the SPR draws cease in October, the commercial inventories will start to drop by 8-10 MM bbls per week just as we go into the winter months. This will cause oil prices to run back up to the $120-130 per bbl range and cause gasoline, diesel and heating oil to all spike higher, which will cause the CPI and PPI to climb even higher than they are now.
Basically the comments are along the lines of the sale of the strategic reserves are to keep the oil price down for the elections and it will come back to bite them.
Originally Posted by JBmurc
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