Posted on 10/24/2021 6:41:32 PM PDT by Hojczyk
TOKYO (Reuters) - Oil prices rose on Monday, extending pre-weekend gains, with U.S. crude hitting a seven-year high as global supply remained tight amid strong demand worldwide as economies recover from coronavirus pandemic-induced slumps.
Brent crude futures climbed 26 cents, or 0.3%, to $85.79 a barrel at 0048 GMT, following on from last Friday's 1.1% gain. The contract was near a three-year high of $86.10, hit last Thursday.
U.S. West Texas Intermediate (WTI) crude futures rose 48 cents, or 0.6%, to $84.24 a barrel, after climbing 1.5% on Friday. It touched its highest since October 2014 - $84.28 - earlier in the session.
"Bullish sentiment continues to support oil prices as global supply remains tight at a time when demand is recovering from the pandemic," said Toshitaka Tazawa, an analyst at Fujitomi Securities
Meanwhile U.S. energy firms last week cut oil and natural gas rigs for the first time in seven weeks even as oil prices rose, energy services firm Baker Hughes Co said in its closely followed report on Friday.
(Excerpt) Read more at finance.yahoo.com ...
Oil stocks are not doing as well as you would think - the market thinks this won’t last.
no need to drill if the price is going to a hundred dollars....
Imagine a world where Bear Shelves Biden’s 16 Executive Orders chokings US domestic production were repealed.
Bidenflation.
How long before these oil prices hit the gas pumps??
Barak is finishing his job on America.
Gas prices are always jacked up in advance of anything bad happening, and always slow to go back down when oil prices fall.
I’ve been in natural resource funds for six months now and i’m kicking ass.
Yeah, what happened? /s
Let’s go Brandon!
How long before these oil prices hit the gas pumps??
A key question. We’ve been making out because suppliers bought their futures expecting what has happened. Meaning they guessed right, they and we benefit. There’s around 40 cents a gallon upside at the current price and probably more after that.
Adjusted for inflation gasoline is still cheap:
I paid 3.15 the other day. I remember paying 3.75-3.90 back in the Obama days.
With inflation I do not think the powers to be will allow gas prices to go too high.
We are at or near Peak Oil Price.
“Adjusted for inflation gasoline is still cheap.”
It isn’t ‘cheap’ for people that have to drive 20-30 miles each way to work every day. That extra $100 in gas eats a hole in their budget.
“With inflation I do not think the powers to be will allow gas prices to go too high.”
There’s also the backstop that helps. People are in the “gripe and keep right on driving” mode right now as prices rise. But at some point people start driving less and then prices are under pressure.
A large amount of gasoline demand is inelastic but enough is discretionary to affect prices.
Also not “cheap” for people living on very low fixed incomes.
We’re to the point where we have to choose between gas and food.
FJB!
I understand it hurts but it’s cheap. It will hurt more when it isn’t cheap. $147 a barrel wasn’t cheap. It was 72% higher than now.
What other products are cheaper now than they were 8 years ago?
I certainly hope so. Gasoline has gone up by THB 2 per liter (that's about 23 cents per gallon) in the past 12 months. Don't think I can handle much more of this.
Cathie Wood’s view is that it has peaked. Also, she notes that gasoline new vehicles hit 18 million by April 2020, and the 2021 model year has only seen 12 million, only part of that falloff is due to chip shortages.
Seriously? I assumed they’d be going through the roof.
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