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Baytex Energy Corp T.BTE

Alternate Symbol(s):  BTE

Baytex Energy Corp. is a Canada-based energy company. The Company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Its crude oil and natural gas operations are organized into three main operating areas: Light Oil USA (Eagle Ford), Light Oil Canada (Pembina Duvernay / Viking) and Heavy Oil Canada (Peace River / Peavine / Lloydminster). Its Eagle Ford assets are located in the core of the liquids-rich Eagle Ford shale in South Texas. The Eagle Ford shale covers approximately 269,000 gross acres of crude oil operations. Its Viking assets are located in the Dodsland area in southwest Saskatchewan and in the Esther area of southeastern Alberta. It also holds 100% working interest land position in the East Duvernay resource play in central Alberta.


TSX:BTE - Post by User

Post by smallcaptdron Sep 20, 2022 7:06pm
282 Views
Post# 34975082

Oil Tightness vs Dollar figure

Oil Tightness vs Dollar figureWhy do we assume that a little tightness in demand would automatically raise the price of Oil? Raising the price of Oil does nothing to relieve the amount of Oil in the market and putting a higher price on Oil is basically a byproduct created by greed saying that if you want this rare commodity then you're going to have to pay a premium for it so there's no slide ruler that would give an exact dollar figure for Oil vs demand so the price varies. At what shortage of Oil is required to hit $100 Oil is it 100,000 bpd or does the market have to be short by 10Mil bpd to hit $100 Oil? My point is that the market could be short 5Mil bpd and the price could remain at $85 because it's the traders who decide and if the market is short because Russia cuts back or OPEC cuts back deliberately to manipulate the price of Oil it's not going to be priced as if the market was in full out production but still being short then the trades are more likely to inflate the price higher if the economy is bullish and not inflate the price to the same level if it is manipulated knowing that extra production is available. So when you read news articles saying that Oil will hit $100 because of the X-factor there's no guarantee what the traders will do. We'll bounce back and forth from $90+ to $80+ near term and each week the global economy changes and recession trumps all because the recession is an economy short of money. 
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