I’ll play!
Gas prices are going up , and it doesn’t appear to be the usual seasonal changes.
The primary driver right now appears to be OPEC successfully reversing their strategy of flooding the markets to punish US shale producers and enforcing production quotas, of which Russia has been holding to as well, changing the market from a glut to getting more in line with where the O&G likes things to be.
Venezuela is basically a failed state and production has been collapsing, something like by 100K barrels a month.
There’s probably a few dollars of oil shock money built in there with Middle Eastern instability.
I wouldn’t expect US production, at least in W. Texas, to be able to produce our way out of it short term, pipelines are pretty much at capacity. Canadian dilbit production is ramping up because it’s well suited for Gulf Coast refineries, there is pipeline capacity, but that stuff is expensive relative to Texas Tea.
If the US backs out of the Iran deal, hold on to yo’ hats with regards to oil prices.
OTC here in Houston starts next week and for the first time in like4 years myself and a lot of friends and co workers are looking forward to it, been pretty rough for us for a while.
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