I’m not the one kvetching that China lost on a source of petro, that’s anybody who thinks Keystone had anything to do with US markets lol.
I believe Biden will hurt the economy, over time, with his energy policies. But, there hasn’t been anything THAT substantial in this administration yet to cause a spike. I think many are forgetting about the increased worldwide demand now that the pandemic is starting to subside.
Wow, I was literally blown away from this rational response…bravo!
And yes you are correct as economies world wide begin to open up demand for oil will continue to rise
It doesn’t look like demand had increased sociably and isn’t projected to until the 2nd half of the year.
Reduced demand definitely contributed to an already problematic production glut. That’s still being worked down, but as oil prices rise you can bet that US fracking will start picking up. Already has.
Break even price varies greatly depending where the oil is being extracted, even within unconventionals. The Saudis have learned they can hurt us but not kill us and their govt is dependent on oil money for funding, so they can’t maintain a low price for too long.
No it’s you believing correlation (which it isn’t even…oil prices started their climb upward before Biden was elected) equals causation.
KSA and OPEC enjoy this leverage because the main sources of US excess capacity are hard to produce expensive plays.
So when KSA wants them out of commission, it floods the market.
When it needs to prop up prices, it tightens supplies.
Right now we think…THINK…COVID is coming to an end and demand will spike, but KSA isn’t sure yet, so they are hesitating opening the spigots…in case a fourth wave of infections strikes before herd immunity is reached.
Also inventory figures are lagging metrics…supplies currently look tight but no one knows for sure…hence the huge backwardation in the futures curve.
Biden stopping the Keystone XL didn’t do anything with supply since the pipeline didn’t exist.
Him stopping new leases on government lands did nothing to supply because a) production on government land is a miniscule portion of overall US production and b) he stopped approval of NEW lease requests without further review. There are plenty of EXISTING leases which haven’t been put into play yet, and Biden did NOT stop them (most people think he can’t without Congress).
Biden’s policies have zip to do with price increases.
Anyone who gets their news from anywhere other than the CEC knows this.
Hope the rest wasn’t too long winded. lol
This is all 100% correct.
ETA: Cancelling the pipeline may have effected oil price a little due to emotion based trading for that day as traders absorbed the news.
I’ll use smaller words for you next time…
Well you certainly can’t use words big enough to describe my beliefs, that’s for sure.
the price of gas through the roof…
and the price of everything shipped by gas will miraculously plummet…
As global demand for oil increases as we come out of the Covid recession, why do you find it surprising that gas prices increase?
I wouldn’t say they were surprised…at this point anything negative will be “thanks Biden!(MALA)” but to be fair it is their turn!
Hundreds of thousands of jobs for Americans.
High prices create tons of jobs for the oil industry in America.
Prices too low crush oil production in America and lead to job losses.
All oil isn’t the same.
I’ve noticed that Americans accept pretty much everything else will go up in price over time. Gas? No. It should remain the same price it was 30 years ago as they complain about prices creeping over $2/gal.
Give me a break!
The EIA predicts that the energy output from renewables will surpass oil by 2050. One thing we do know is that oil is finite. The other thing we know is that when the energy of extraction is equal to the energy of combustion, it is game over.
Not a chance.
Oil will be needed to make plastics and to do the heavy lifting.
Igñorant investors are getting soaked.