This statement assumes there’s no idle capacity in the oil industry right now. Dollar to a donut that if Dufus rescinded the EO he passed two hours after taking office on killing the Keystone Pipeline and eased the restrictions on oil leases, the spot price of oil would drop like a stone.
“This statement assumes there’s no idle capacity in the oil industry right now. Dollar to a donut that if Dufus rescinded the EO he passed two hours after taking office on killing the Keystone Pipeline and eased the restrictions on oil leases, the spot price of oil would drop like a stone.”
While that would be nice, it wouldn’t produce any product for quite some time so the price isn’t likely to change much quickly. We have a shortage of oil/gas. We have a shortage of projects even underway. Many OPEC countries can’t even produce up to their restricted amounts people used to worry about them cheating on and overproducing.
This looks like a blow-off top forming right now, but the drop won’t be massive, supply is short. The current jump is war-fear, not fundamental.