RE:RE:To avoidIn addition, it has been mentioned many times but it bears repeating. The supply
crunch will indeed occur at some point because of the chronic lack of refining capacity
and other vital infrastructure.
You can drill and produce all you want but you can't increase refining capacity so you
have a choke point. This applies to all producers who are well aware of storage
capacity limits, pipleine capacity limits and refining capacity limits.
These are all reasons why producers are not falling over themselves to over produce
no matter how high the price goes. People just assume that oil prices should come
down because high prices normally lead to overproduction .
The market will remain tight with prices remaining high unless these structural issues
get addressed. Biden wants more production but seems unwilling to address the underlying
reasons simply because it would be too much backwardization of his anti fossil fuel policy.
So those that want to scare and fear monger because oil prices are high either have
another agenda or lack an understanding of the dynamics involved.