RE:RE:RE:RE:RE:RE:RE:US.I agree the EIA report was horrible.
One wonders if its believable given how different it was from the API numbers.
They both can't be right.
At the same time, the market ignored it.
Your argument regarding oil price is logical. Time will tell if you are correct.
I agree that oil is a good hedge against inflation, but if I was using oil contracts for that purpose I'd be buying out into the future, not near term. I'd also be buying gold and silver, neither of which are at their highs.
Personally I suspect the Groupthink is what's kept investors from bidding up oil stocks to new highs. The groupthink is these companes hold stranded assets that won't be sellable in 7 years when the world burns up from global warming (or something similar). Groupthink is that the earth is warming and carbon is bad.
The current developing energy crisis in Europe and Asia may be the first little dent in this groupthink - mainly to those living in those locations. North American's may not have any idea an energy crisis is underway.
All those investors who have been conditioned to over pay for clean energy shocks are probably very reluctant to buy oil and gas shares. It means they have to first break their conditioning...........that will be a slow process. I don't think they will do so until dividends are introduced and the share price gains have led the market for some time.