RE:RE:RE:RE:RE:Another frustrating dayPosted on Friday , seems pretty accurate . Now I hear oil heading to the $70/bbl near term
topdown99 wrote: Hi oilgamble , I too am in , lol . With options expiring today and it being a Friday , you knew things would be on sale which provided a few more shares "on the cheap" .
The cold is still embedded deep into the US south so I expect high demand continuing into next weekend and US dry gas production dropped below 70bcf/d on Feb 17th . Who knows how long it will remain in the 70's but thats a daily drop of +20bcf/d , you know this will take another big bite out of storage .
We all know warmer weather will eventually return but how much nat gas will be taken from storage in the next 6 weeks and how much can be replaced during the few months of injection before summer demand starts pulling on storage again ? And its the same with oil .
Covid cases are dropping all over the world , as the economy starts back up demand will ramp back up too . People are sick of being at home and want to get out , anywhere !!! Supply has been low enough that even with covid restrictions , we are still drawing down inventory . Now consider a demand increase of 10 million bbl/d over one or two months ....... that will put Saudi Arabia and Russia in control . By slowly adding supply just short of demand levels , it will push the price higher (which all in OPEC+ want) and I expect $80/bbl by this summer .
North America is in no position to rapidly increase production of crude or nat gas , I don't expect foreign dictators to be the consumers friend so high prices are coming . OPEC+ countries need higher prices and I expect the "club" to stick together which is good for existing NA producers