Biden and the EIA are cooking up some numbers for this weekManipulation accusation is generally the domain of the misinformed providing justification for a bad bet.
But there is no coincidence that oil is being hammered down to $72 overseas and at home on every breakout and $72 so happens to be the outer limit of the range Biden and his cronies gave for where they would buyback barrels for the SPR.
The problem with this is twofold: 1) Higher oil prices are important checkstops in the economy to keep consumption at a reasonable rate when consumption is exceeding supply. It prevents a massive spike in oil prices which can harm the economy and especially those who are underprivileged living close to the poverty line. Removing that checkpoint from the system allows demand to continue unfettered exposing the commodity to rapid spike risk. 2) The charade can't go on forever. Eventually the short positions are too much and the house's balance sheet doesn't have the capital to guarantee the positions and the rooster comes home to roost. The true economics always come out eventually.
We are in a massive demand/supply imbalance that is being covered over on multiple fronts. Eventually we are going to see oil go to heights we could have never imagined (at least reasonably imagined). I'm not sure how long they can keep a lid on it, but it may take until 1) Stories about shortages begin to surface or 2) The US gets their price to fill all the SPR barrels, or 3) The 2024 US election.
I'm betting number 1 happens before 2 or 3.
BTE is in a powerful spot here with what will be 160k+ barrels of the most valuable commodity to power the world in the face of rapidly rising oil prices.
Patience my friends!