US oil under $100 per barrel

[JimH52]

U.S. Oil Ends Below $100 as Gasoline Stocks Pile up By Investing.com

U.S. Oil Ends Below $100 as Gasoline Stocks Pile up

www.investing.com

Oh Oh...
Gas prices plummeting and inflation will follow....Mitch is upset.....

 

[Harpy Eagle]

It is good news for the country, so in a minute this thread will be filled with pissed off MAGAs

 

[Toro]

It's because investors are worried about a recession.

 

[Canon Shooter]

When gas falls down to $2.29 a gallon I'll be impressed.

This is nothing to celebrate...

 

[toomuchtime_]

It's because investors are worried about a recession.

True, but a lot of the rise in oil prices was about anxiety about the war, so once that anxiety abates, oil will drop to a proper level.

 

[Meister]

True, but a lot of the rise in oil prices was about anxiety about the war, so once that anxiety abates, oil will drop to a proper level.

Oil was rising before the conflict.

 

[toomuchtime_]

Oil was rising before the conflict.

Only gradually then but sharply since the invasion. In December 2021 it was $71.71 but in June 2022, it was $114.84.

Cushing, OK WTI Spot Price FOB (Dollars per Barrel)

44114.84

 

[Toro]

Oil was going up because very little capital has been invested in the oil industry. After oil collapsed in 2020, it created one of the worst depressions the industry has ever seen. Shareholders told companies to stop drilling for oil. Companies that couldn't fund themselves outside of the capital markets went bust. Something like 75 firms filed for bankruptcy. Massive pools of capital in private equity simply went away because many investments went to zero. On top of that, OPEC is tapped out. OPEC can't turn on the taps. They are producing full out. The Ukraine war led to a spike, but prices quickly came down. Russia is still selling its oil but at deeply discounted prices to India and China. The fact that it is still getting into the market means that oil China and India would otherwise have purchased is being displaced.

When you stop investing in something, but demand keeps rising, then prices go up. That's true of anything. That's what has happened in energy. The ESG Disinvestment movement has been a negative, and Democrat's policies regarding no drilling on federal lands doesn't help, but it's really just capitalism working as it should.

The people selling oil futures are giant global macro hedge funds. They are swamping oil traders. If you talk to oil traders, they will tell you that absent a recession, you could see $200, $300 even $400 oil this year because the supply margins are so thin. But because investors are worried about a recession and demand abating, oil is selling off.

This supply/demand problem isn't going away anytime soon. We are simply not producing enough. I own a lot of oil stocks. I am thinking about adding if they continue to go down.

 

[Sunni Man]

Looney tune Liberals/Demorats are still trying to pin the blame on Putin.
But the majority of the public know it's bozo Biden's idiot policies. ...

 

[theHawk]

U.S. Oil Ends Below $100 as Gasoline Stocks Pile up By Investing.com

U.S. Oil Ends Below $100 as Gasoline Stocks Pile up

www.investing.com

Oh Oh...
Gas prices plummeting and inflation will follow....Mitch is upset.....

 

[theHawk]

It’s the religious right’s fault that oil is so high:

 

[bigrebnc1775]

U.S. Oil Ends Below $100 as Gasoline Stocks Pile up By Investing.com

U.S. Oil Ends Below $100 as Gasoline Stocks Pile up

www.investing.com

Oh Oh...
Gas prices plummeting and inflation will follow....Mitch is upset.....

So the Russian invasion of Ukraine is over?

 

[Meister]

Oil was going up because very little capital has been invested in the oil industry. After oil collapsed in 2020, it created one of the worst depressions the industry has ever seen. Shareholders told companies to stop drilling for oil. Companies that couldn't fund themselves outside of the capital markets went bust. Something like 75 firms filed for bankruptcy. Massive pools of capital in private equity simply went away because many investments went to zero. On top of that, OPEC is tapped out. OPEC can't turn on the taps. They are producing full out. The Ukraine war led to a spike, but prices quickly came down. Russia is still selling its oil but at deeply discounted prices to India and China. The fact that it is still getting into the market means that oil China and India would otherwise have purchased is being displaced.

When you stop investing in something, but demand keeps rising, then prices go up. That's true of anything. That's what has happened in energy. The ESG Disinvestment movement has been a negative, and Democrat's policies regarding no drilling on federal lands doesn't help, but it's really just capitalism working as it should.

The people selling oil futures are giant global macro hedge funds. They are swamping oil traders. If you talk to oil traders, they will tell you that absent a recession, you could see $200, $300 even $400 oil this year because the supply margins are so thin. But because investors are worried about a recession and demand abating, oil is selling off.

This supply/demand problem isn't going away anytime soon. We are simply not producing enough. I own a lot of oil stocks. I am thinking about adding if they continue to go down.

A major concern is not only Biden's policies toward drilling, it's the rhetoric coming from the Hill.
Nobody wants to invest in the industry when they are uncertain about it's future.

 

[Toro]

A major concern is not only Biden's policies toward drilling, it's the rhetoric coming from the Hill.
Nobody wants to invest in the industry when they are uncertain about it's future.

Look, I'm not a fan of the Democrat's policies. And in my world, the ESG divestment campaign is one of the dumbest most short-sighted "left-wing" things I've ever seen.

But we talk to the companies. And it's the shareholders that they are most concerned about. Shareholders want them to buy back stock and pay dividends. As a shareholder, I don't disagree. But I also encourage them to start punching holes in the ground. Wellhead returns are as good as I've ever seen.

 

[JimH52]

Look, I'm not a fan of the Democrat's policies. And in my world, the ESG divestment campaign is one of the dumbest most short-sighted "left-wing" things I've ever seen.

But we talk to the companies. And it's the shareholders that they are most concerned about. Shareholders want them to buy back stock and pay dividends. As a shareholder, I don't disagree. But I also encourage them to start punching holes in the ground. Wellhead returns are as good as I've ever seen.

But with the world going off fossil.fuel...the big oil companies don't know what return they will get on the billions they might invest in exploration. It is possible that in 5 to 8 years fossil fuels may be rare.

The Russian invasion has put a serious hold on the world's march away from oil.