RE:WTIiMAnewBE wrote: I keep reading there is a 30$ war premium to to oil. LOL.
That would put todays oil price at only 60$. ???? Is this because of the SPR release every day. I'm so confused about this sector. Does anybody have any clarity on this, or are you all just as confused as I?
There was a $30 premium when oil was at $120 but that is all gone now, the premium never made any sense because Russian oil never left the market only being sold to different customers, supply and demand remained the same. SPR release is barely balancing the market if that, volatility will remain until the midterm elections but overall shouldn't stay at levels much lower than this for prolonged periods. By then the US will be booking contracts to replenish some the barrels that were released, so this should be bullish for demand baring a severe recession. Clearly Grant thinks prices will remain elevated for the foreseeable future and now Strathcona is willing to pony up 2.3 billion for Serafina which is mainly SAGD in western SASK not the lowest cost production in the patch. Hopefully patience will be rewarded.