Post by
nozzpack on Jun 23, 2022 4:14pm
Forward Oil Price
Investors forget the contango in the oil markets.
So, the 10% President opened the Strategic Reserve at 1 million barrels per day in April.
That will carry on until late September .
By late May, the US strategic Reserve was at its lowest since 1987.
So, that is an extra artificial injection into the oil market over the summer period.
Come late September , that injection of 1 million barrels per day will end.
By then the SR will be the lowest ever and Mr 10% will have to buy oil to replace those SR.
That is a 2 million barrel per day change in the US oil demand.
There are no reserves that I am aware of that could fill this 2 million barrels change in oil demand.
Very well thought out Dont you think..
Comment by
Hannamuk on Jun 23, 2022 4:18pm
Bolshevik, no problem as you predict dollar wii go to zero!
Comment by
OzzyOz on Jun 23, 2022 7:20pm
Where is the contango? Is oil not in backwardation?
Comment by
nozzpack on Jun 23, 2022 8:45pm
When a market is in contango, the forward price of a futures contract is higher than the spot price. My point of inference is that oil price will go up considerably, relative to the current price in early fall due to market factor reversal arising out of Bribens opening the SR..
Comment by
OzzyOz on Jun 24, 2022 5:02pm
So you agree the oil price is in backwardation not contango.