Comments from OilPrice.com - Dec 28

[dan_s]

Tuesday, December 28, 2021

My thoughts are in blue.

The oil markets are poised to end 2021 on a relatively high note, as concerns of Omicron impacting global demand in the same way that Delta did turn out to be overblown. The rise in outright oil price was aided by supply disruptions across different continents - Libya still has at least 300,000 b/d withheld from the market as a result of renewed political infighting and skirmishes, Ecuador is yet to repair its flood-damaged pipeline system, whilst Nigeria is struggling with another force majeure at the Forcados Terminal. Combined with rumors of another week-on-week decline in US crude inventories, the Brent complex moved up to $79.5 per barrel, whilst WTI has last traded around $76.5 per barrel. - MY TAKE on Omicron from the first day Fauci ("The Boy That Cried Wolf") announced that a massive wave of new cases was going to kill Christmas, is that it was another FEAR based pullback in the price of oil. By now most adults should know that these Covid-19 variants are being used as cover by the idiots in Washington to cover for their total incompetence on just about every issue they tackle. My trust in our Federal government is at an all-time low.

Iran Talks Now Focus on Crude Export Guarantees. Iran should be able to sell its crude oil and repatriate revenues freely, stated the Iranian foreign minister Hossein Amir-Abdollahian, as the eighth round of nuclear talks moved on to non-nuclear topics amid ‘visible’ progress. < And we should be able to live in a world without Iran funding terrorists. If Team Biden gives these wackos a clear path to weapons grade uranium they should guarantee their status as the worst administration in American history.

PEMEX Slashes Crude Export Outlook. Mexico’s state oil company PEMEX has cut its crude export estimate for 2022 to a mere 435,000 b/d, half of this year’s 1 million b/d average, as the country seeks to refine more of its crude domestically. < PEMEX is a prime example of why politicians should not run oil companies.

[mkarpoff]

...and why companies like Talos should not make deals with the devil.

[SergioSays]

would think the Pemex news is very bullish for the Canadian heavy grades, although I don't know how much incremental Canadian can be shipped south. Perhaps the reversal of the Capline opens up capacity for more Canadian heavies.

[CreativeEquity]

I agree very positive for Canadian producers.