RE:RE:RE:RE:Oil up massive tonightNotice how the oil price keeps bouncing back despite the assurances from Biden that he is winning the energy war.
Once the 1 milliion barrel per day draw on the SPR is finished then you take away 5% of USA consumption on a daily basis (20M bbls per day)-- that's significant.
Add in the fact that the shale industry DUCs inventory is declining and most of the sweet spots have been drilled up. Also include the pledge to give back a significant chunk of the profits to the shareholders instead of drill-drill-drill.
Now consider that as the Russian embargo starts to bite in Europe there is fierce competition for remaining oil on the market.
Finally consider the chronic underinvestment in the petroleum industry. What, a new find off-shore? Count on at least a decade before it can be brought on-stream. When it comes to conventional reserves figure on a 10% annual decline even in pools that have good aquifer support.
Best to breath easy and if you want to sell then wait until 2nd Q results are published. Stilll lots of volatility to follow but long term trend is clear.