Energies / Bio-Diesel Prices Break

[errolanderson]

Fuel prices coming down . . .

WTI oil again breaking $80 per barrel once again. Weekly chart support seen at $75 pert barrel . . . major support $65 per barrel. Demand destruction key factor pressuring oil. Biodiesel and ethanol margins also pressured and now impacting grain markets . . . .

[Landdownunder]

10 12 months back thought they have got this all wrong oil will hit $150.

But ive got that 100% incorrect openly admit it.

[errolanderson]

Oil washout. Dec WTI oil now approaching next key support @ $75 per barrel. Gasoline / diesel / dropping . . . .

[AlbertaFarmer5]

10 12 months back thought they have got this all wrong oil will hit $150.

But ive got that 100% incorrect openly admit it.

You're probably not wrong. In fact this price action it's exactly what will sooner than later drive the price to those higher levels. There is still a fundamental shortage of investment and, let alone upcoming supply, relative to the inelastic portion of demand.
The lack of investment has been going on for so many years, that this short blip of improved prices did not come close to repairing the damage. At these price levels, we are back to discouraging investment while simultaneously encouraging consumption, when exactly the opposite needs to be occurring to bring long-term supply and demand back into balance.

[TOM4CWB]

Oil up now… Saudis deny oil production increase…



Cheers

[Sodbuster]

I don’t think you’re wrong yet Landdownunder you just need a little bit time. With Putin and company threatening Europe there will be a oil premium until Russia’s threats are put to rest. I’m still heavily invested in oil and gas stocks, my hedge against petroleum products. Not planning on trimming my oil stocks until this conflict is over.

[errolanderson]

OPEC-led Saudi Arabia can’t be pleased with their lack-of-ability to manipulate global oil prices with production cuts. Let the cartel infighting begin . . . .

[TASFarms]

Won’t oil be on the higher side until the US get their oil reserves replenished?

[errolanderson]

Won’t oil be on the higher side until the US get their oil reserves replenished?

U.S. inventories appear recovering on falling oil demand as recession deepens. If $75 WTI oil breaks, next stop could be mid $60 per barrel range (IMO). And if OPEC starts infighting on production quotes, oil prices could go a whole lot lower yet. Resistance @ $85 per barrel on bounce?

U.S. bank analyst estimates, pretty much garbage (in my view) . . . .

[wheatking16]

U.S. inventories appear recovering on falling oil demand as recession deepens. If $75 WTI oil breaks, next stop could be mid $60 per barrel range (IMO). And if OPEC starts infighting on production quotes, oil prices could go a whole lot lower yet. Resistance @ $85 per barrel on bounce?

U.S. bank analyst estimates, pretty much garbage (in my view) . . . .

My target has been 72-74 since the end of September.

Will reassess if that level is reached.