EIA - FORECAST $112 The EIA is calling for $112 average for WTI OVER THE second quarter and I just read this , but I believe they said $103 for the second half of the year over supply issues.
The price for Brent is much higher.
It is a weird market , but what I am beginning to realize is the Russian oil is not going to be in the mix , and I think that actually isn't being priced in right now.
The reality hasn't set in , and when it does the price of WTI will reflect this. I think there is a small belief that if they hack off they will be allowed to sell there wares to the world. Any of you have kids ? So these Russians decide after they took the cookie with out asking that there sorry ? So do you let your kids have a cookie Amy time soon. No you don't. So if they don't keep these measures in place what lesson does Russia learn.
Nothing. I actually beleive there in the shutter for a long time. Samctions work but to work they have to have been in place long enough to get the full effect.
Unfortunately that is suffering for the Russians , and Putin so they really think twice about say going after Poland or who knows ? You bomb someone and the suffering is immediate, for this new type of war fair to work it involves time
So until the oil is replaced by other countries , this takes time , oil - gas pricing is going to be strong , this will encourage some more drilling , not at the pace of the past. Calculated drilling. Article is on Oilprice.com free
site some good stuff there !
That's my 2 cents
Craig