RE:US Rejects Oil Offers This is a fascinating article with revealing language about the Biden administration's opinion of oil, and what they expect from the market to refill the reserve. In the article, there is talk of fairness to taxpayers and government patience, and reeks of entitlement.
What we are observing is a standoff, and we can be confident now that the suppression of the oil price relates entirely to in the Democrats desire to refill the reserve between 67-72 Wti. Oddly, the language suggests that the government is facing off against the greedy oil companies in trying to refill the reserve. But the oil companies do not set the price, the market does. The oil companies are not the enemy.
This confirms for me that the suppression of the oil price relates entirely to in the Democrats desire to refill the reserve between 67-72 WTI. I am sure they are using any and all tools available to them to achieve this goal.
There is only so much they can do with such an imbalance in supply and demand. Eventually, the imbalance is going to be far too great causing a run on the oil price. This is a foolish game and works against the administration's environmental efforts to decrease hydrocarbon use. The very best way to decrease demand is to have a higher oil price. They are creating greater demand for oil when there should be less further worsening the energy crisis.
The current onshore inventory and supply/demand numbers implied by the weekly energy reports suggest a WTI price well above $100. It's only a matter of time, and I suspect the Biden ministration is going to get caught with their pants down.
If you are not king oil right now, you will never be.