What happens when the FEAR fades?

[dan_s]

Note below from Keith Kohl on 12-20-2021

One year ago, I told you China would help drive the oil recovery in a postCOVID world.
Well, it turns out that not only did China’s demand recover in 2021, but so did other
leading oil consumers. In fact, China’s Q4 oil demand is projected to be 13% higher than
the same period in 2019 — the year before COVID madness gripped the world.
China’s gasoline production hit fresh highs this year after swelling to nearly 14 million
barrels per day to meet demand.
Current estimates are that Chinese oil demand will continue growing over the next few
years, peaking at 16 million barrels per day in 2026.
And while China’s fuel demand might be slowing, we have only to look at our own
backyard for more bullish catalysts.
We need to look at just three things, and then you’ll understand why the fundamentals
will remain tight in early 2022.

First, our demand is growing.
According to the EIA’s latest numbers, U.S. petroleum and product demand surged to
23.1 million barrels per day two weeks ago. To put a little perspective on that, consider
that this is a new record, which means we’ve surpassed our pre-pandemic demand.
Make no mistake — higher demand in oil-producing leaders like the United States will
contribute to a tighter market.
Granted, demand growth could be somewhat restrained as fuel prices soar here in the
U.S., as well as the fact that we see lower consumption during the winter months. The
fact that we breached fresh record highs in December is something in and of itself.
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MY TAKE: Winter is the seasonal low for oil demand. When the FEAR of Omicron fades, and it will, demand for oil-based products will soar in the spring.

[dan_s]

Stocks that I like that are on Keith's BUY list: EOG, FANG, OVV, PXD, PAA and REPX, which I am adding to our Small-Cap Growth Portfolio.

[dan_s]

Ponder this...
If you ran a political party whose poll numbers were fading fast and you wanted to lower gasoline prices, would try to manipulate oil prices on days when you knew fewer human traders were working? Days like Black Friday or Christmas Week or even better the day when the front month NYMEX Oil Futures Contract (JAN22) was set to expire.