20-20 hindsightIt wasn't long ago that many of the posters here were excited about how the price of oil was going to head back up to $100 because the US would be refilling the SPR. The impending purchases were going to cause an inevitable imbalalance in supply/demand which were going to take SU shares back up over $50 or even $60.
Today, with 20-20 hindsight, the same posters are saying that current oil prices are the fault of American politics. Interesting.
I'm just guessing, but I think if you polled a million Americans and asked them if they are happy or unhappy about oil prices being at $3 per gallon vs $6 per gallon, you would find that the results were overwhelmingly in favour of lower prices.
IF oil prices had remained at $6 per gallon (that's a 3.8 liter gallon), imagine how much higher the price of groceries and pretty much everything else would be.
Blaming the DEMS for giving the public what they overwhelmingly wanted and quite frankly what the economy needed to slow down inflation (after MBS and OPEC basically told Biden to go f*** himself) is one of the worst arguements I have ever witnessed on what I consider to be a very intelligent forum.
The DEMS are just as evil as the GOP so they will use whatever means possible to keep themselves in power. The move to lower oil prices in the USA was one of the smartest political moves I have ever seen (albeit the list is short).
The real question is whether the SPR needs to be refilled or not. MC astutely pointed out that between fracking and having Canada's oil sands firmly under its thumb, the US simply doesn't need a massive (and expensive) storage system for oil. Unlike China, who relies on imports at the present and likely for a few more years until renewables replace hydrocarbons, the US is not constrained by oil.
What nobody seems to be talking about is that Biden has taken MBS's big stick and shoved it up his a**. OPEC has been sticking it to the US and to Europe for decades. MBS let his ego get in the way and America decided it was time to flex it's strength in response.
Is it really surprising to anyone that oil remains at $70 per barrel? Experienced has spoken many times about Saudi's need to have oil at $80 per barrel. What about the needs of American frackers? My guess is that $70 is the acceptable sweet spot for the fracking industry in the States.
Political gamesmanship? Of course. It is a given.
Does owning Suncor shares in a world where $70 oil is and will likely continue to be a reality make sense? I would think so as the company can make money at $70.
What should be far more concerning to Suncor shareholders is how fast renewables are going to replace hydrocarbons as the future source of energy in the USA. The US will only support $70 oil (and the fortunes of Alberta's oil patch) until it no longer needs oil. How long will that be?