Whitecap Resources Inc T.WCP

SPR BID and AWARD contract dates - a repeat ...

[2021Gamble]

Just wanted to repeat this as I think it's really important for all to understand WTI drop right now, and have the proper perspective.

There is 70mb up for bid from the SPR - bidding ends tomorrow!!!  it "should" be of no surprise that the price of WTI dropped for the duration of this bid process - as it means they bought this 70mb cheaper - much cheaper - than just 2 weeks ago... But hold on to your shares, because the rebound off this (yes, imo), will see new highs across the board post April 21st when the contracts are awarded. 

Contract awarded by the 21st....bid ends tomorrow, the 12th....

The following is the original post, and the source article...cheers folks

SPR Bid and award contract dates

These dates are important.  now is the time to buy, reshuffle your portfolios etc etc.

Because after the ink dries on April 21st, the artificial price suppression on WTI will be removed - and may be as early as mid next week depending on the contract wording on the April 12 date and WTI price

70 m barrels up for bid, and WTI dropped to mid $90's for the bidding and award process only

Super bullish I am

Cheers folks

2. DOE Announces Second Emergency Notice of Sale of Crude Oil From The Strategic Petroleum Reserve to Address Putin’s Energy Price Hike

WASHINGTON, D.C. — The U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) today announced a Notice of Sale of crude oil from the Strategic Petroleum Reserve (SPR). This Notice of Sale follows President Biden’s announcement yesterday authorizing the sale of crude oil from the SPR to address the significant market supply disruption caused by Putin’s war on Ukraine and aid in lowering energy costs for American families.  

The SPR will release approximately one million barrels of crude oil per day over the next six months. Crude oil in this emergency sale will enter the market in two releases.

The first 90 million barrels will be released between May and July, through two notices of sale totaling 70 million barrels, and 20 million barrels already scheduled to be released in May 2022. The remaining 90 million barrels will be released between August and October 2022. DOE must receive bids for the first notice of sale no later than 10:00 a.m. Central Time on April 12, 2022, and will award contracts to successful offerors no later than April 21, 2022. 

The May through July sales will be conducted with crude oil from the following four SPR sites:

• Up to 20.5 million barrels from Big Hill
• Up to 21.5 million barrels from West Hackberry
• Up to 18 million barrels from Bryan Mound
• Up to 10 million barrels from Bayou Choctaw

The SPR is the world's largest supply of emergency crude oil, and the federally owned oil stocks are stored in underground salt caverns at four storage sites in Texas and Louisiana. The SPR has a long history of protecting the economy and American livelihoods in times of emergency oil shortages.

Any company registered in the SPR’s Crude Oil Sales Offer Program is eligible to participate in this and other SPR crude oil sales. Other interested companies may register through the SPR’s website: Crude Oil Sales Offer Program.

For more information on the SPR please visit  Infographic: Strategic Petroleum Reserve  and Fact Sheet: Strategic Petroleum Reserve . Sign up to receive future FECM news alerts here.

[Dogsbreakfast4U]

How are the bidders able to lower the price of oil?

[masfortuna]

"The release of strategic government oil reserves should ease some market tightness over the coming months, reducing the need for oil prices to rise to trigger near-term demand destruction," said Giovanni Staunovo, strategist at UBS, in a note to investors Monday morning. "Some of the market tightness caused by the self-sanctioning of Russian crude buyers — either in fear of future

[masfortuna]

The oil is sold in the futures market and is represented as a contract.  If 240 million barrels are expected to flood the market, then it would be logical to assume that the oil will be sold more cheaply than when there was no 240 million.  The bids close tomorrow on the first segment. 

[Dogsbreakfast4U]

  I understand that but that process will continue over the next six months so why would oil spike back up after the 12th? If it does, it should be only temporarily and go back down again when next month's release and bidding contracts are set to resume. In other words, isn't the price of oil capped to a certain extent over the next six months?

[2021Gamble]

first, this bid is for the release now through June, so yes, we will see a recovery until the next release bidding, where the price will once again be supressed This isn't about supply/demand price action, There is a huge number of 'speculators' playing oil futures that have zero intention of ever taking a single barrel of oil for delivery - ever. Once you understand the above

[MigraineCall]

If I read this right, the replacement of Biden's initial 30M SPR loan releases announced at the end of last year which are being drawn out now, are supposed to be paid back to replenish the SPR as an inflow. This is scheduled to start in Sept 2022, at the same time the latest big release is planned on being drawn from the SPR reserves, an outflow. Way to go Brandon! Now fast forward towards

[NonCredibleSrc]

Just to put big numbers into perspective - 240 mil boe is equivilent to only about 2 1/4 days of oil usage worldwide.

[1970Craig]

Hello Gamble !     Just wanted to say that your totally right.  No different than any other commodity.   Remember TRADING PLACES. The movie !! LOL.      IF THE FROST DOEST AFFECT THE CROPS WE HAVE LOTS OF ORANGES.  PRICE GOES DOWN , if there affected , and there is less oranges price goes up.     Today until April 21 we have  1.333 M