Reply to $7/gallon gas is coming

Forum Index » Political Discussion

Reply to "$7/gallon gas is coming"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]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 [/quote]

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.[/quote]

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. [/quote]

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.[/quote]

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.

[twitter]https://twitter.com/gugo907/status/1509512042612686851?s=21[/twitter]

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics