The Oil Market Crisis Sparked By Russia’s Invasion Is Nearing Its End

OilPrice.com ^ | Jan 02, 2023 | Alex Kimani

[BeauBo]

Russia’s invasion of Ukraine sparked a major market crisis, sending oil and gas prices to multi-decade highs and causing the Euro to crash below parity with the dollar.

Today, energy prices have fallen back to pre-war levels, driven lower by fears of a global recession and weak oil demand in China due to Covid outbreaks.

Analysts remain divided regarding oil prices in 2023 however, with some analysts believing the return of China and the lack of Russian energy will send prices soaring.

[BeauBo]

The oil futures markets are currently pricing deliveries six months from now, even lower.

[NWFree]

I’m really enjoying the lower prices and managing under 11mpg this tank.

[BipolarBob]

So, sell my oil stocks?

[Owen]

Oil price began its rise in December 2021, long before Russia/Ukraine events.

https://tradingeconomics.com/commodity/crude-oil

Non event. The price of oil need not be supply/demand dependent. Money is created whimsically from nothingness by the Fed. It’s silly to presume anything measured by it needs to conform to any rules.

[Maine Mariner]

Mine are paying good dividends and lower prices can mean more sales and perhaps more profits.

[BipolarBob]

Same here. Good dividends. Nowhere else to run.

[TexasGator]

“Mine are paying good dividends and lower prices can mean more sales and perhaps more profits.”

High prices >> high profits.

[Maine Mariner]

Generally yes, but too high of prices can reduce demand, sales, and in some cases revenue.

[TexasGator]

“Generally yes, but too high of prices can reduce demand, sales, and in some cases revenue.”

But here we have direct evidence that higher prices resulted in higher earning, higher profits and higher stock prices.

[Paul R.]

Well, I can hope. Gasoline is up 30 to 50 cents here in the mid-South in the last few days.

[Steven Tyler]

After the chocolate ration is reduced from 30 grammes per week to 20, the Ministry of Truth puts out the claim that it has been increased to 20 grammes (its supposed previous level is not stated).

Later on, Winston hears a reporter/newsreader on the telescreen claiming that spontaneous gatherings of people have formed and demonstrated, purely to thank Big Brother for this:

For the moment he had shut his ears to the remoter noises and was listening to the stuff that streamed out of the telescreen. It appeared that there had even been demonstrations to thank Big Brother for raising the chocolate ration to twenty grammes a week. And only yesterday, he reflected, it had been announced that the ration was to be REDUCED to twenty grammes a week. Was it possible that they could swallow that, after only twenty-four hours? Yes, they swallowed it.

[gleeaikin]

“Oil price began its rise in December 2021, long before Russia/Ukraine events.”

What an ignorant statement. All fall we were hearing reports about over 150,000 Russian troops stationing along all the Russian borders with Ukraine, including the ones in Belarus. My nerves were being affected, so I’m sure the oil executives were feeling it. Also December 2021 to February 2022 can HARDLY be described as LONG BEFORE. So I would say this “war” certainly had something to do with higher oil prices.

Part of what is helping lower prices is the fact that Europe has pretty much filled its fuel storage sites, and Europe is having some unusually warm winter weather.