RE:Oil Swami Nuttall gives nod to SuncorWhy would Nuttal say SU share price would double if oil goes to $100? Wasn't SU trading at about $53 when oil was at $120?
What will the SU share price be if oil stays under $70 until the USA refills its SPR at its target price?
With Russia selling oil to India and China and anyone who will buy it for $50, where is the incentive for oil to go back to $100 per barrel????
The USA wants Russia to suffer so it wants low oil prices. The USA also has the Biden administration pressing HARD for renewables with the IRA. And then they have Biden over turning both Houses that are trying to gain a little relief for oil.
Canada, a potentially large supplier has been handcuffed by its Supreme Leader.
Venezuela, another potentially large supplier has been handcuffed by the USA.
Oil prices were supposed to surge to all time highs and keep going up when Russia pulled the plug on supplying Europe. Prices spiked temporarily after the Russian invasion of Ukraine, and call options with $200 strike prices began to trade. So, what happened?
The technology for solar/battery storage is seeing new breakthroughs that are driving down the cost of alternative energy. Solar/battery energy is now cheaper to build and operate than simply running the hydrocarbon powered grid. In 2019, renewable energy made up 12.5% of American energy needs. In 2022, renewables made up 21.5%. That is an increase of over 70% in three years and that was before the Biden Administration decided to pump trillions of dollars into the IRA and block any attempts to help out the oil and gas industry.
Hard core American legacy auto investors are holding out hope because GM sold almost 6 million cars in 2022. GM's profit margins were miniscule on those sales, but still. However GM counts a sale when a car leaves a factory to be delivered to a dealer instead of when somebody actually buys the car. Currently, GM has 3.5 million cars inventoried at dealers which represents more than half a year of production. Think about that. Now do you wonder why they are dumping cars at 40% discounts in China? Maybe it has something to do with the fact that EV sales made up 51% of all auto sales in China in January.
If you are thinking, so what, who cares about China auto sales, you might want to consider that China now accounts of 1/3 or all auto sales in the world adn China. China has been accounting for more than 50% of the world wide profits of legacy auto makers for years.
Does anyone actually think that gas powered cars are still going to be sold in 2030???? Ford is going all-in on EV production. Volkswagon has pledged to spend $195 billion on its EV platform in the next few year. That's right, $195 billion. GM is racing to convert to EV's even thought their Ultium platform is already antiquated. Even Toyota, the last EV "denier" company has capitulated and is pledging to focus on EV's now.
Who is Suncor going to sell all of the oil that they upgrade and refine into fuel for transporation?
What is Suncor doing to head off the inevitable decline in demand for most of their products?
I know, oil is going to go up in price as short sighted companies are no longer investing in oil anymore. How stupid can they be? Of course demand for oil is going to just keep growing and growing which means oil prices are going to the moon.