MaximusGainus wrote: It seems you are badly misinformed, so I'll set the record straight before I and others all put you on ignore.
I'm holding Suncor,but I think oil will soon have a pullback. Biden must do all he can to lower fuel prices going into midterms and to keep inflation at a minimum. False. Biden has no control over fuel prices. He ignores the fact that his damaging policies and war on fossil fuels caused it, trying to blame oil companies for the problem by hauling them in front of the so called 'Price Gouging' committee hearing. Also taking a page from Trump's 'China Virus', he calls it 'Putin's price hike'. By now, he has already done all he can do to lower prices, other than reverse his mistakes on Keystone, approve permits, provide a clear future path for energy companies going forward, and change course on his terrible energy policies that created this.
Russia is still selling to different countries so they are still selling the same amount,(still adds up). False. Russian sales of crude and product by water are down by 1 to 2 million a day presently, Kazakhstan's pipeline loading port has issues, refineries are being shut, storage is nearly full, and production is being cut back. Future cuts are coming as contracts wind up and wind down. Much of that oil had been purchased before the war. As the Europe gets it's act together to cut back on Russian oil and find replacements, prices will rise as it is now around $107.
Iran is producing more False. Production is still well below past levels, Iran's oil industry is in disarray due to sanctions, and with no nuke deal on the table, the only real buyer of their discounted black market oil is places like China.
Iraq is starting False. Iraq has been producing for years, and incremental production increases are small.
Biden has increased spr release and can release much more. False. The SPR is not a bottomless endless pool of oil supply, it is an emergency strategic reserve. The effect on the market has already happened, and is evident in today's market price. The announcement of draining it only served to lower present prices, and strengthen futures prices as we have witnessed with the futures curve. With half of the SPR gone in 6 months, (much of it going overseas as it is the wrong type for US refiners), there will be less cushion left, along with higher prices and more volatility.
Consumers are filling up less due to higher prices at the pumps and existing producers are in full production mode availing of high prices, so you tell me that this wont peak sometime soon. False. As this is a shoulder season before the main driving season hits, it is normal for gasoline demand to be low this month. Gasoline stocks are high and pump prices are dropping. However, distillates like diesel and jet fuel are in a bad shortage in some parts of the US, they may need emergency measures. Diesel is being shipped from the US to Europe as fast as possible instead of normally being shipped from Europe to the US. As we enter refinery maintenance season, stocks are bound get tighter before the major demand driving season hits. Normal fuel price to GDP ratios to start demand destruction in OECD countries are in excess of 5%, but we are only around 3.5% so there is lots of room for more pump price increases. Demand is very strong, as well as for jet fuel. Delta just announced the most bookings on record.
Adding to all this e15 is being added to gasoline in ever increasing amounts True, but this is even more difficult and expensive for refiners to add and process, and will create more smog, annoying those in cities. It serves to take food out of a tight grains market and turn it into fuel, making consumer's food even more costly, adn global hunger worse. It also only increases it from E10 to E15. It keeps the corn growers happy in corn states, but the additional savings in gasoline over a few summer months make a minimal reduction on the global gasoline consumption scale. Most states other than corn states don't want it, and some may not implement it.
and more oil projects are permitted daily,(bay du nord) being a huge one for equinor. False. So when do you think they will produce their first bbl of oil and bring it to market? Offshore projects as well as all other major projects take about a decade. Global capital investment over the years has been a fraction of what is was, leaving a huge shortfall that can't even keep up with current consumption demand. Increased costs make future projects extremely expensive and risky in this current climate where everything is going against more fossil fuel project development. Companies with infrastructure already in place and decades of reserves will rule.
Then you have more alternative energy added to the mix daily. Not enough. Alternative energy additions to the energy supply are not being added as fast as new growing demand is appearing. It will be exactly what you say, an addition, not a replacement. China is a leader in renewables, yet is building hundreds of new coal fired thermal power plants to meet future energy needs as they can do the math. The cost and scarcity has skyrocketed for all the materials to make all these fancy new renewables, making their adoption far less quick as expected.
Bottom line, you don't really know what you are talking about, so don't try to convince others by pushing false information. This is a great board, with no tolerance for trolls.
Goodbye Wynjoe.
Like Obscure and others have done, you are now on ignore. Go play somewhere else.
Wynjoe wrote: I'm holding Suncor,but I think oil will soon have a pullback.Biden must do all he can to lower fuel prices going into midterms and to keep inflation at a minimum. Russia is still selling to different countries so they are still selling the same amount,(still adds up).Iran is producing more,Iraq is starting, and Biden has increased spr release and can release much more.Consumers are filling up less due to higher prices at the pumps and existing producers are in full production mode availing of high prices, so you tell me that this wont peak sometime soon.Adding to all this e15 is being added to gasoline in ever increasing amounts,and more oil projects are permitted daily,(bay du nord) being a huge one for equinor.Then you have more alternative energy added to the mix daily.