/biz/ - Business & Finance

I'm going to be real with you here for a second - this is just the beginning, autumn-winter are going to be a bloodbath.

>>49741645
we either need more supply (not happening lmao) or a lot more demand destruction for it to go lower

>>49741645
When the government and industry finally say "fuck off" to environmentalists and let new supply come online, then prices will go down.

>>49741645
that's just an ETF. that can lose all its value no matter where the price of oil goes.
WTI is likely to reach $150/barrel in Q3 according to i think it was morgan stanley

>>49741727
OPEC will increase production again when US firms spool up domestic production to crush it back down like they did when futures went negative

it's only getting started. the reverse will take more than a year

>>49741645
What could reverse price?
Increases in production and/or declines in demand

>>49741645
To make it short: nothing. The price is here to stay. It would need an oil company without any profit incentive. Which is unrealistic to say the least. But there is nothing any individual government can do about it.
The oil price is high because oil supply is INTENTIONALLY withheld by oil companies. Think of what De Beers is doing with Diamonds. OPEC countries could easily make up for the loss in supply due to the Russian/Ukrainian war, but they don't intent to.

With electric cars now slowly gaining traction, as well as general phaseout of fossil fuels, the oil companies are now putting on the squeeze to get as much profit of oil as they can while they can still do it. Because in parts investments in new oil projects have been dropping for many years now.
the short period of time during the pandemic when you were PAID for buying oil is the cause for the current price hike. We haven't reached peak oil just yet... but we do have reached peak oil investment.

>>49744265
The price is high because of Biden and the dems, nothing more.

>>49744265
Electric cars are not gaining traction. They are expensive, require rare and new parts, and don't have the electric infrastructure to make any dent on emissions. In fact, even if they did catch on electrical demand would just go up and oil would be replaced with coal. They launched this plan half cocked and without any foresight.

>>49744330
This is your brain on /pol/
Next he'll say inflation was caused by the US alone too

>>49744265
>>49744549
It’s retarded isn’t it? I live in an area where 90% of our electricity is generated by burning oil, but residents here think they’re saving the planet because of their new Tesla…

>>49744008
>>49744265
This
Despite years of underinvestment in oil production thanks to destructive government policies and ESG mandates, OPEC is actually sitting on mountains of oil and they're greedily manipulating the price.
Don't forget those evil oil companies, we should levy extra taxes on their profits with these high prices, that will certainly incentivize them to invest and increase production.
Don't be fooled, increased prices have nothing to do with monetary policy and energy is NOT one of the first areas to suffer the symptoms of inflation.
Clearly what we need is socialism and an energy transition to solar and EVs.

>>49744330
now you listen here fat, my cornpop son fought and died in the vietnam war for your economic freedoms. I know nothing about my son’s business dealings and we’re living in the greatest economic period anyone’s ever experienced

>>49745131

It's an artificial market. At any point OPEC+ could start dumping to their heart's content and drive barrel prices right back down below $50. Right now they know North American producers are wary to ramp up their own production again (after taking massive losses during the pandemic), and there are issues with the Russian supply line and others, so it's a great time to be greedy assholes and rape the world of as much money as possible. They'll stop once supply lines are normal, other producers are starting to make money too, and bring it back down to a margin that hurts the competition (since no one can produce oil for the same profit they can).

>>49744611
Simply stating facts.

>>49744265
In Canada, Teck Resources spent over $1 billion trying to develop the Frontier Mine oil sands in northern Alberta. They eventually gave up after 10 years of the federal government stonewalling them with environmental/native bullshit. Western countries dug their own grave when it comes to oil prices.

>>49741645
Increase supply.