Posted on 02/17/2022 8:25:18 AM PST by george76
Brent surpassing $100 a barrel is almost a given at this point, many energy analysts say. Now an increasing number of forecasters predict the commodity surpassing $125 a barrel and even higher.
Money is pouring into investments in oil-related stocks, and international oil companies are raking in record profits.
The Energy Information Administration lowered its OPEC capacity estimates by 300,000 barrels per day in February.
Oil prices are soaring and nothing appears to be stopping their ascent. December to January saw international benchmark Brent crude climb by roughly $11 a barrel, and it’s gone up nearly the same amount since the start of February, underpinned by supply concerns, rising inflation and geopolitical tensions.
...
″Given that you’ve got this underinvestment in capital exploration, we’re running low on physical oil, we’re running short of supply,” John Driscoll, director of JTD Energy Services, told CNBC on Monday. “There is a scenario where we could vault past $120, even as high as $150” a barrel.
...
The market is in what we call a steep backwardation which gives a premium to any prompt physical available oil. We’re starting to sense that demand is on its way to recovering, and we’re looking at supply shortfalls,” he explained.
Those shortfalls exist both in terms of OPEC+ production — the alliance of OPEC and several non-OPEC countries — pumping oil below the levels it promised to add to markets, and sector underinvestment in the U.S. and other countries in the wake of Covid-19 and governments’ pushes to switch to renewables.
...
the S&P 500 Energy Sector Index is up more than 50% year-on-year.
...
Driscoll isn’t alone in his bullish call — J.P. Morgan this month forecast oil as “likely to overshoot to $125” per barrel “on widening spare capacity risk premium.”
“Supply misses are rising.
(Excerpt) Read more at cnbc.com ...
Undersupply? Hmmmmm. What could possibly be the cause of that? Brandon: “I DID THIS!”
Keystone XL pipeline bad, Nord Stream II pipeline GOOD. Domestic drilling bad, Russian drilling good. Wait, isn’t Russia our Enemy? Oh wait, Hunter needs his next check from Gazprom so he can give 10% to daddy.
As an investor, I say excellent!
Going as Barak planned.
Gee, if only we had some way of getting that shale oil from the Dakotas and Montana, and the Canadian oil fields to the rest of the country......................
The heck with them, we have all you want here in TX.
$150?
I am betting on >$200.
Nordstream lets them bypass the lines going through Ukraine and the big fat fees that Ukraine charges them.
Joe Biden is a criminal and has declared war on America.
Just in time for the summer driving season. Oh well, I guess Biden voters like the “effective” “real” pay cuts.
Other type of barrel is the wheelbarrow needed to bring cash to carry in the trunk to buy a few gallons.
If your debit and credit cards are canceled for being a conservative.
I really wonder about the mentality of Dem voters who today support Biden, think he is doing well with economic policy and feel the country is going in the right direction.
As Dennis Prager once said “such people are around me somewhere when I walk on the sidewalk and they represent a danger to themselves and to me.”
Commodities traders are leeches on the nether regions of society, worse than lawyers.
“I did this!” — JRB, Jr.
I’ve been saying it for almost a year now on this forum- if you have a 401K, IRA, mutual funds, stock investments, make sure you are well positioned in natural resource funds!!
Smiles in North Dakotan.
Never ever doubt the ability of a career politician to screw up everything they touch.
> I am betting on >$200. <
At that level Brandon would probably try price controls, which of course would make things worse. Stupid is as stupid does.
Almost over $4 gallon now twice what it was under Trump.
Funny how under.trump, for 4 solid years, the price jusy went down not,up, despite “growing demand” that the industry now uses to,justify increasing prices under the liberals
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