Could oil go to $200/bbl in Q4 2022? - June 30

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Could oil go to $200/bbl in Q4 2022? - June 30

Post by dan_s »

"At the current record pace of SPR drainage, one way or another the Biden admin will have to end its artificial attempts to keep the price of oil lower some time in October (or risk entering a war with China over Taiwan with virtually no oil reserve). This means that unless Putin ends his war some time in the next 5 months, there is a non-trivial chance that oil will hit a record price around $200 - precisely the price the White House is bracing for - a few days before the midterms. Which translates into $10+ gasoline."

Read more: https://www.zerohedge.com/commodities/w ... ck-200-oil

MY TAKE: Total U.S. crude oil inventories (including the SPR) are already below where they were during 2010 to 2014 when WTI traded in the $80 to $110 per barrel range. Add the fact that OPEC+ is now out of spare capacity and adjusting for inflation, WTI going over $150 looks likely.
Dan Steffens
Energy Prospectus Group
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