Zerohedge: A string of Wall Street banks including Goldman Sachs have forecast oil will hit $100 a barrel this year as the global market tightens. […] Prices are also moving on mounting concern over a possible Russian incursion into Ukraine, with President Biden saying he’d consider sanctioning Vladimir Putin if the Russian leader orders an invasion.
Via reader and industry insider Adrian – “What perfect storm is that?”
$100/Bbl, they are dreaming, I’ve said for a long time this is going to be real pain. I reckon you’ll see $120/Bbl before they even start to figure there ain’t no taps to turn on.
All those on the shelf projects are just that, on the shelf. Making shit happen is not going to be a re-run of the 70’s OPEC mitigation those easy days are long gone.
No sane O&G people will risk a lot of money on new development on the notion that either Biden or Trudeau are trustworthy.
They’re likely to sit things out until the shitstorm of very expensive energy removes those two fools from office.
Dear Ontario and PQ urbanites, especially you middle class ladies – you voted for it, you got it, shut up.
I wanna see $ 10/litre gas .
Hit these useless twats in the pocketbook.
Make them feelz the burn.
WTI will be at $100USD by spring, much higher by end of year. By 4th qtr ’22 to 1st qtr ’23 the supply crunch will be very much in play.
There will be consequences to the pullback in drilling investment globally over the last decade+. You simply don’t bring new production online at the snap of your fingers. There has been a substantial uptick in drilling in western Canada this winter, also south of the border too vs last year, and from operators i’ve talked to things bode very well for the forseeable future for those involved, some long term drilling contracts are being signed.
” You simply don’t bring new production online at the snap of your fingers. ”
Yes you do, thanks to fracking and the spudded wells left over from the 2010s fracking wave. Unless they are all pumping they are waiting to come back online.
And right there you have the very epitome of an ignoramus.
Having been a business man and an observer of what goes on in the world I will make one comment about oil. Not that long ago it was $147.00 a barrel. In 2014 gas was as high as 1.41 a liter. By Jan 2015 gas was down to .83 cents a liter. What that means in the scheme of things doesn’t much matter.
Today, government meddling has fucked the world’s economy and it will get one hell of a lot worse if we don’t get control of the insane people we have allowed to hold public office.
Just two short years ago life was running along as smoothly as it ever has and then the lie about a virus was used to destroy our lives. Fools now think that shooting experimental drugs into their bodies will save them even as it is proven it is killing them.
I do not think that many people realize just how foolish they have been. They have been manipulated because they do not think. They cannot look at what is happening and put two and two together as it were.
I sincerely think they will destroy this country, our families, jobs, businesses, churches, culture, freedom, the whole damn thing because we lack intelligence and the ability to see what we are doing. There is not a honest moral man in charge of anything in this country.
Gas will be the least of our problems.
” They have been manipulated because they do not think. They cannot look at what is happening and put two and two together as it were.”
The irony.
With respect I have to disagree and I think commodities traders especially oil ones should take their profits right now. For one thing, there are tons of wells from the 2010s boom that were spudded. Are they all pumping?
More importantly, we’ve been here before: when the fed simply ended QE last time in 2014, the price of gold tanked (ie the USD got stronger) and oil and other commodities thundered in. That price drop was a monetary phenomena. This time, I think the fed is way more serious in part because of inflation but also because of years of debate that have actually gone generally in favor the good guys ie those against ridiculous monetary policy. This opinion of mine is apparently shared: since Powell’s fed conference a couple days ago, the price of gold has dived. Not a lot yet but if it keeps going like this it will add up and oil will follow.
Another difference from last time is that China is having a ‘Lehman moment’ and seems hesitant to resort to ‘policy bazookas’ ie wild money printing because they’ve had enough of that and maybe also because they’ve seen how bad it was to the west. This all adds up to bad times for commodities in general, and a lot of stock market carnage. Great buying opportunity coming up!
That is an interesting outlook on life. Do you have any insight into the eurodollar markets? Also, do you think the US stock market will ramp up into the midterm elections? If so, when do you think the ramp would start?
Thanks for any insight you give.
I’m waiting until May. The fed’s supposed to get this party started proper in March. I don’t want to get suckered into a ‘bull trap’.
Oh Re the EU: they barely survived the Greece thing. Actually the EU didn’t at least as we know it thanks to Brexit.
Italy is the next domino, and holy jeebus what a domino to fall. Barely any economic growth this century, TONS of debt, doesn’t seem to produce much besides wine and organized crime. In short: don’t touch with a bargepole.
Hey dummy (Un-nothing)
Do you not know the biden fools (EPA and Treasury) are going after oil producers and the banks who fund them.
You think the cost of oil is high now. Just wait.
Gas prices will spike so high, that more people will drop out of the workforce … too expensive to commute … all other costs spike due to “fuel surcharges” … the economy will slip into a deep recession … and then there will be a surplus of oil and gasoline, and the prices will crater. 6mos. – 12mos. from now.
Jimmy Cater II Here we go again
What to add…?
The ruble is still near record lows, about 78 to the US dollar.
If Wall Street were focused on making money for investors, and not taking down Vladimir Putin, the ruble should have been back at 30 to the US dollar or so.
But Russia’s economy is a disaster, and it’s about enter an insane war and see the price of its main commodity tumble.
I wonder how much OPEC money is in Biden’s hands, so that they can squeeze the US.
In the last hour, natural gas future prices spiked some 35-40%. Everybody is puzzled by this. Probably nothing.
When Goldman Sachs predicts $100 oil you can be sure of one thing…Goldman is a seller of oil.
Oil Cos in Canada in harvest mode, no or very targeted investment. Gov regs, no pipe, greenies, and pariah status thanks to Canada bought and paid media.
Take cash, forget about Canada, we are not business friendly.
BTW, if electric is the way, who builds infrastructure or supply?? In Canada, both are last century, and not capable of even 10-20 load build.
Good luck, North of 49 is screwed, simple fact.