Bonterra Energy Corp T.BNE

Another view on why commodity prices have been under pressur

[TheRexmember]

Kav it would be pretty easy to just post positive views or just post negative news. The data is all quite mixed. I think the economy is a little better than people think and that the main forces affecting price right now are not industry driven or just based on general economics. Nuttall's point is that the financial market is having an outsized  impact.

Below is another view that comes to the same conclusion. Basically it is too expensive to carry a lot of inventory so it is impacting prices by reducing inventory. Prices are healthy enough now, but Eventually that will bite everyone as inventory reduction stops. And the latest SPR release end in 4 weeks. 

https://www.cnbc.com/video/2023/06/01/oil-will-once-again-be-profitable-when-market-destocking-runs-out-says-goldman-sachs-jeff-currie.html?__source=sharebar%7Ctwitter&par=sharebar

[kavern23]

Rex..today is short covering on oil before OPEC meeting.  I cant predict what OPEC will do but it does look like they need to cut to keep oil over 70. The Service side of the economy is strong but the manufacutring side is weak in both USA and CHINA.

[TheRexmember]

Murky data. Manufacturing weak but employment still strong. So maybe more avgas and less diesel? Demand is still relatively high but it still probably going to be a supply story going forward whether that is opec cuts or lack of new production.  If Goldman is right, prices are under pressure because nobody wants to finance oil in storage. If so we will have an oil price spike in a few