Crude oil

[BTO780]

Wait until we hit the field .... fuel prices will be through the roof. They are high now, and it’s only mid Jan.

[errolanderson]

Errol at one point I believe predicted $60 a barrel oil much more likely than $100 oil, what do you think today? As I said before government policies around the world will continue to lead to energy price inflation.

Well, WTI came damn close to $60 bucks in early December. WTI above $85 is very overbought. Any relaxation in geo-political and global oil prices will tube like the NASDAQ.

There is no shortage of oil, just an abundance of politics.

$60 oil before $100 oil all day long (IMO) . . . .

[Taiga]

Well, WTI came damn close to $60 bucks in early December. WTI above $85 is very overbought. Any relaxation in geo-political and global oil prices will tube like the NASDAQ.

There is no shortage of oil, just an abundance of politics.

$60 oil before $100 oil all day long (IMO) . . . .

I hope you are right, will wait longer to buy diesel.

[errolanderson]

I hope you are right, will wait longer to buy diesel.

TAIGA, there’s hope . . . the NASDAQ just broke its 200-day moving average.

[mcfarms]

Well, WTI came damn close to $60 bucks in early December. WTI above $85 is very overbought. Any relaxation in geo-political and global oil prices will tube like the NASDAQ.

There is no shortage of oil, just an abundance of politics.

$60 oil before $100 oil all day long (IMO) . . . .

And an abundance of stock gains for those that ignored the doom and gloom of 2021 and bought oil and gas companys in the first qtr of last year.

[TOM4CWB]

And an abundance of stock gains for those that ignored the doom and gloom of 2021 and bought oil and gas companys in the first qtr of last year.

Interesting times...

Bloomberg interviews go in reverse to you Errol...

What will Putin do?

3 oil tankers just blown up by 'Yemen' [Iran] in gulf...

Shale oil in no hurry to crank back up...

The annalists went through country by country how most producers less than 70% of production now .

If they do nothing[don't increase oil production]... will get 20-30% more for oil... why worry... *no one needs oil anyway... its just killing us all anyway* zero sum game... carbon taxes or pay the producers???

Can get summer diesel zero bio blend now... don't pay till summer... why chance it... downside gain .20/L?

Upside...??? If crazy Ivan pulls another Crime...a during Olympics???

Very interesting times!!! Buy oil calls??? instead puts??? remember when oil went to -40$/B??? Volatility x 10

A bird in the...

Cheers

[TOM4CWB]

Interesting times...

Bloomberg interviews go in reverse to you Errol...

What will Putin do?

3 oil tankers just blown up by 'Yemen' [Iran] in gulf...

Shale oil in no hurry to crank back up...

The annalists went through country by country how most producers less than 70% of production now .

If they do nothing[don't increase oil production]... will get 20-30% more for oil... why worry... *no one needs oil anyway... its just killing us all anyway* zero sum game... carbon taxes or pay the producers???

Can get summer diesel zero bio blend now... don't pay till summer... why chance it... downside gain .20/L?

Upside...??? If crazy Ivan pulls another Crime...a during Olympics???

Very interesting times!!! Buy oil calls??? instead puts??? remember when oil went to -40$/B??? Volatility x 10

A bird in the...

Cheers

WSJ: MARKETS COMMODITIES OIL MARKETS
Oil Prices Hit Seven-Year High on Rising Geopolitical Tensions
Ebbing concerns over the Omicron variant and tensions in Europe and the Middle East are helping to drive the rally
How Much Would It Cost to Reduce Global Warming? $131 Trillion Is One Answer
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0:00 / 4:380:25

How Much Would It Cost to Reduce Global Warming? $131 Trillion Is One Answer
Money is a sticking point in climate-change negotiations around the world. As economists warn that limiting global warming to 1.5 degrees Celsius will cost many more trillions than anticipated, WSJ looks at how the funds could be spent, and who would pay. Illustration: Preston Jessee/WSJ
By Joe Wallace
Updated Jan. 18, 2022 4:58 pm ET
Crude prices rose to their highest level since the 2014 shale-induced oil crash, a milestone in a rally that is gathering momentum as geopolitical tensions threaten to knock supply.

Futures for West Texas Intermediate, the main grade of U.S. crude, added $1.61 per barrel, or 1.9%, to $85.43 on Tuesday. That marks the highest closing level since October 2014, when oil prices were moving in the opposite direction as a gusher of U.S. crude flooded the market.

https://www.wsj.com/articles/oil-prices-hit-seven-year-high-on-rising-geopolitical-tensions-11642507485

Just a dumb grain farmer from Killam... who has never marketed wheat barley or oats in my life [I was told]...

Ironic how that worked out.. Chuckie/Aggie... Pride comes before the fall!!!

[TOM4CWB]

BBC:WORLD MIDDLE EAST
Houthis Fired Drones and Missiles in Abu Dhabi Attack, Investigation Finds
The attack showed off the military advances that the Iran-backed Yemeni militia has made in recent years
Armed Drones Are a Growing Threat From Rebels in Yemen
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Armed Drones Are a Growing Threat From Rebels in Yemen
Yemen’s Houthi rebels are using armed drones with startling success. WSJ reporters describe their increasing sophistication and recent confirmed attacks. Illustration: Laura Kammermann
By Dion Nissenbaum and Benoit Faucon
Updated Jan. 18, 2022 6:58 pm ET
Iran-backed Houthi militants in Yemen used advanced missiles and drones to target the United Arab Emirates on Monday, according to people briefed on the investigation—a deadly demonstration of the expanding threat to Middle East security posed by Tehran’s emboldened allies.

The Houthi strike amounted to the most visible display of the military advancements made by a militia that less than a decade ago relied on machine guns and rocket launchers but now can help Iran project power almost 1,000 miles away from their Yemeni mountain strongholds. The Houthis have hit the U.A.E. before, but this was the first time the Emiratis acknowledged it."

https://www.wsj.com/articles/houthis-fired-barrage-of-drones-and-missiles-in-abu-dhabi-attack-investigation-finds-11642515339?mod=hp_listb_pos3

Oil prices hit seven-year high after attack
Published13 hours ago
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Oil rig
IMAGE SOURCE, GETTY IMAGES
The price of oil hit its highest level in more than seven years on Tuesday as traders worried that an attack on a fuel storage facility in the Middle East could affect supply.
A suspected drone attack by Yemeni Houthi rebels in the United Arab Emirates blew up three fuel tankers.
Three people were killed in the attack on Monday near Abu Dhabi airport.
A Saudi-led coalition retaliated with airstrikes on the Yemini capital of Sanaa, killing as many as 20 people.
The surging price of oil is also thought to be partly down to growing optimism for a speedy global economic recovery from the coronavirus pandemic, which would increase demand for the fossil fuel.
Concern about the attacks on the oil-rich state, twinned with expectations for a surge in demand, sent prices to their highest level since October 2014.
Brent crude, which is the international benchmark for oil prices, rose almost 1% to hit $87.22 a barrel. Price rises were even steeper in the US, where West Texas Intermediate crude increased by 1.3% to $84.89 a barrel.
Cost of living crunch
And there are already concerns that increases in the cost of oil could further contribute to a cost-of-living squeeze.
"Traders are eyeing the $100 per barrel mark for crude oil for the first time since 2014, with the perceived diminishing threat posed by Omicron to the global economy and supply constraints and disruption driving the black stuff higher," said AJ Bell's investment director Russ Mould.
"A rise in oil prices to a seven-year high and a continuing, though below inflation, rise in UK earnings has put the spotlight once again on inflationary pressures and a cost of living crisis," he added.
Mr Mould's comments followed news from the Office for National Statistics that the cost of living in the UK was increasing faster than salary rises, leaving people feeling poorer.
More on this story

https://www.bbc.com/news/business-60044210

[jazz]

There are three things I think errol is missing in oil.

First its a catch all holder for inflation which is not slowing down and will only get worse due to shocks in the supply chain. Secondly, oil is being restricted by the ESG crowd. Lastly its still tied to geopolitical stability. Do we feel the world is going to be more stable after the pandemic? History suggests otherwise.

[canolacrazy]

All Canadian oil and gas companies are talking about two things-paying down debt so they are not at the mercy of banks anymore, and returning cash to shareholders, either through share repurchase or direct dividends. They are not in the mood to increase capital expenditures at this point.

What I'm waiting for is the the Alberta and Saskatchewan budgets in the next month or so. Balanced budgets look to be a no-brainer, and healthy surpluses for the next year, the only provinces in Canada to do so. This should drive Trudeau and his merry band of spenders crazy. Look out for the Quebec and Ontario to lead the fight to try and find a way to grab some of that.