If oil inventories go upIf the EIA shows a build after the API build likely this goes back to $1.10. Could make 6 cents a share. Risky but 10:30am is the tipping point today and also earnings loom, they won't be good, negative or flat at best, if forward guidance isn't good and if oil drops we could go back under a buck.
Don't think we are out of the woods as OPEC meets in March and oil could be range bound now between $62 and $55. This might be the top end of this cycle and a good opportunity to get out and cycle back in. I could have got out and in many times with BTE and profited but held. so I am not convinced this rally will last either.
Most analysts see $100 a barrel as unrealistic. A few see the super cycle and it seems to be based on inflation post recession and post Covid. It's very speculative and not a sure thing.
It sounds like people are basing increased prices and future inflation on the perceived idea that oil is going up post recession as historically it often does, not on fundamentals and the actual supply/demand balance.
Texas shale is coming back online and OPEC can stop this rally next month.
Can we all agree Biden is the man and Trump was the biggest bust for the oil business?