$7/gallon gas is coming

[Anonymous]

Anonymous wrote:How was your recent Amtrak ride?

Can you please read the post directly above yours?

[Anonymous]

Can you answer the question? Yeah, you can’t, because you don’t ride Amtrak.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Spr release is super short sighted.

The point of spr release is for super dire emergencies - like getting nuked or attacked

Not because Melissa and brad are mad in ohio that their suburban is expensive

Perfect time to go long oil even more

Lol, a war that threatens supply is pretty much the standard reason for an SPR release. Especially a war that threatens the supply of sour which is what the SPR is made up of.

DP. This potential SPR release would be incredibly short sighted. We are not in a short term supply squeeze. Oil problems right now are systemic. Oil was already up huge before Russia invaded. We need higher oil prices to (a) destroy demand and (b) induce more production so prices can rebalance. Instead an SPR release will subsidize demand and keep marginal production on the sideline longer. Releasing from the SPR may moderate prices for the next 6 months to get through the midterms but the admin is running a huge risk of major run up in prices 2023 and 2024. They hate oil and I don’t hold that against them but it is hard to understand that which you hate. And the admin decision making really shows it’s ignorance.

The answer to high oil prices has always been high oil prices. The correct play is to write off the 2022 elections, take the electoral medicine and regroup for 2024. Instead they’re about to put 2024 in play in order to try to save a tiny majority in Congress. Please tell me when the adults are back in charge.

[Anonymous]

Anonymous wrote:Can you answer the question? Yeah, you can’t, because you don’t ride Amtrak.

The point that just went completely over your head is that the question was answered right before you posted.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Spr release is super short sighted.

The point of spr release is for super dire emergencies - like getting nuked or attacked

Not because Melissa and brad are mad in ohio that their suburban is expensive

Perfect time to go long oil even more

Lol, a war that threatens supply is pretty much the standard reason for an SPR release. Especially a war that threatens the supply of sour which is what the SPR is made up of.

DP. This potential SPR release would be incredibly short sighted. We are not in a short term supply squeeze. Oil problems right now are systemic. Oil was already up huge before Russia invaded. We need higher oil prices to (a) destroy demand and (b) induce more production so prices can rebalance. Instead an SPR release will subsidize demand and keep marginal production on the sideline longer. Releasing from the SPR may moderate prices for the next 6 months to get through the midterms but the admin is running a huge risk of major run up in prices 2023 and 2024. They hate oil and I don’t hold that against them but it is hard to understand that which you hate. And the admin decision making really shows it’s ignorance.

The answer to high oil prices has always been high oil prices. The correct play is to write off the 2022 elections, take the electoral medicine and regroup for 2024. Instead they’re about to put 2024 in play in order to try to save a tiny majority in Congress. Please tell me when the adults are back in charge.

No elected government is ever going to have a policy of intentionally destroying demand (that's why the Fed needs to be independent).

I think this one is normal and a good short term idea. Prices are elevated right now because of emotion not fundamentals. Yes, demand has pushed it up as well but a political risk premium has been added to it. That extra bump is all because of sour. The SPR is sour. Shale is sweet. This gives some time to work on bringing Venezuelan and Iranian supply back and lowers the price for Russian crude even further. The price is already well high enough to spur new production. Prices will be below $100 in 2023, mark my words.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Spr release is super short sighted.

The point of spr release is for super dire emergencies - like getting nuked or attacked

Not because Melissa and brad are mad in ohio that their suburban is expensive

Perfect time to go long oil even more

Lol, a war that threatens supply is pretty much the standard reason for an SPR release. Especially a war that threatens the supply of sour which is what the SPR is made up of.

DP. This potential SPR release would be incredibly short sighted. We are not in a short term supply squeeze. Oil problems right now are systemic. Oil was already up huge before Russia invaded. We need higher oil prices to (a) destroy demand and (b) induce more production so prices can rebalance. Instead an SPR release will subsidize demand and keep marginal production on the sideline longer. Releasing from the SPR may moderate prices for the next 6 months to get through the midterms but the admin is running a huge risk of major run up in prices 2023 and 2024. They hate oil and I don’t hold that against them but it is hard to understand that which you hate. And the admin decision making really shows it’s ignorance.

The answer to high oil prices has always been high oil prices. The correct play is to write off the 2022 elections, take the electoral medicine and regroup for 2024. Instead they’re about to put 2024 in play in order to try to save a tiny majority in Congress. Please tell me when the adults are back in charge.

No elected government is ever going to have a policy of intentionally destroying demand (that's why the Fed needs to be independent).

I think this one is normal and a good short term idea. Prices are elevated right now because of emotion not fundamentals. Yes, demand has pushed it up as well but a political risk premium has been added to it. That extra bump is all because of sour. The SPR is sour. Shale is sweet. This gives some time to work on bringing Venezuelan and Iranian supply back and lowers the price for Russian crude even further. The price is already well high enough to spur new production. Prices will be below $100 in 2023, mark my words.

Haha, no. With all due respect, I don’t think you actually study this space. Oil prices were already elevated BEFORE Russia invaded. We’ve been consistently drawing down inventory in Q1 2022 when Q1 is usually a time to BUILD inventory. Almost everybody who works in the industry was sounding alarm bells about a looming supply crunch coming this summer before Russia invaded. Now the problem is worse. The only way prices are below $100 in 2023 is if we have a serious recession.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Spr release is super short sighted.

The point of spr release is for super dire emergencies - like getting nuked or attacked

Not because Melissa and brad are mad in ohio that their suburban is expensive

Perfect time to go long oil even more

Lol, a war that threatens supply is pretty much the standard reason for an SPR release. Especially a war that threatens the supply of sour which is what the SPR is made up of.

DP. This potential SPR release would be incredibly short sighted. We are not in a short term supply squeeze. Oil problems right now are systemic. Oil was already up huge before Russia invaded. We need higher oil prices to (a) destroy demand and (b) induce more production so prices can rebalance. Instead an SPR release will subsidize demand and keep marginal production on the sideline longer. Releasing from the SPR may moderate prices for the next 6 months to get through the midterms but the admin is running a huge risk of major run up in prices 2023 and 2024. They hate oil and I don’t hold that against them but it is hard to understand that which you hate. And the admin decision making really shows it’s ignorance.

The answer to high oil prices has always been high oil prices. The correct play is to write off the 2022 elections, take the electoral medicine and regroup for 2024. Instead they’re about to put 2024 in play in order to try to save a tiny majority in Congress. Please tell me when the adults are back in charge.

No elected government is ever going to have a policy of intentionally destroying demand (that's why the Fed needs to be independent).

I think this one is normal and a good short term idea. Prices are elevated right now because of emotion not fundamentals. Yes, demand has pushed it up as well but a political risk premium has been added to it. That extra bump is all because of sour. The SPR is sour. Shale is sweet. This gives some time to work on bringing Venezuelan and Iranian supply back and lowers the price for Russian crude even further. The price is already well high enough to spur new production. Prices will be below $100 in 2023, mark my words.

Haha, no. With all due respect, I don’t think you actually study this space. Oil prices were already elevated BEFORE Russia invaded. We’ve been consistently drawing down inventory in Q1 2022 when Q1 is usually a time to BUILD inventory. Almost everybody who works in the industry was sounding alarm bells about a looming supply crunch coming this summer before Russia invaded. Now the problem is worse. The only way prices are below $100 in 2023 is if we have a serious recession.

I know that. That's why I said a premium has been added. And yes, I'm predicting a serious recession in 2023. Demand destruction is coming.

[Anonymous]

Is she really this stupid?

[Anonymous]

Biden just can't help himself.

He is demonizing the oil industry. Again.

No, Joe, their reluctance to drill more and produce more ISN'T because they don't want the price of oil to come down.
Their reluctance to drill is YOUR fault. You have sent the message to them that what they produce is not welcomed in this country. Why would they produce more when you continue to fund green energy efforts AT THEIR EXPENSE? Why would they produce more when you have continued to tell them you are going to put them out of business?

And, Americans are not buying the "Putin's price hike" narrative. They know the price of gas was increasing well before the war in Russia started.

And, regarding the Strategic Reserve.....

The strategic reserve is strategic for a reason.
This is not a reason to tap it.

[Anonymous]

I have only been paying about thirty cents more for gas than during the pandemic. I really am not seeing the issue.

[Anonymous]

[Anonymous]

[Anonymous]

Anonymous wrote:Biden just can't help himself.

He is demonizing the oil industry. Again.

No, Joe, their reluctance to drill more and produce more ISN'T because they don't want the price of oil to come down.
Their reluctance to drill is YOUR fault. You have sent the message to them that what they produce is not welcomed in this country. Why would they produce more when you continue to fund green energy efforts AT THEIR EXPENSE? Why would they produce more when you have continued to tell them you are going to put them out of business?

And, Americans are not buying the "Putin's price hike" narrative. They know the price of gas was increasing well before the war in Russia started.

And, regarding the Strategic Reserve.....

The strategic reserve is strategic for a reason.
This is not a reason to tap it.

That's a lovely rant and it does encapsulate the prevailing mentality of many in the industry but forgive me for being blunt, it's complete bull from top to bottom. Bunch of freaking snowflakes.

That being said. Biden's bit about the industry being greedy today was also bull.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Biden just can't help himself.

He is demonizing the oil industry. Again.

No, Joe, their reluctance to drill more and produce more ISN'T because they don't want the price of oil to come down.
Their reluctance to drill is YOUR fault. You have sent the message to them that what they produce is not welcomed in this country. Why would they produce more when you continue to fund green energy efforts AT THEIR EXPENSE? Why would they produce more when you have continued to tell them you are going to put them out of business?

And, Americans are not buying the "Putin's price hike" narrative. They know the price of gas was increasing well before the war in Russia started.

And, regarding the Strategic Reserve.....

The strategic reserve is strategic for a reason.
This is not a reason to tap it.

That's a lovely rant and it does encapsulate the prevailing mentality of many in the industry but forgive me for being blunt, it's complete bull from top to bottom. Bunch of freaking snowflakes.

That being said. Biden's bit about the industry being greedy today was also bull.

A good 97% of the surge in gas prices is NOT supply related - it's traders trying to profit.

[Anonymous]