VBIN's oil stock thread.

[EricL]

(04-01-2022, 12:57 PM)fenders53 Wrote: Not shocked the reserve will be tapped again, but the extreme level did surprise me.  Clearly kicking the can down the road.  May take some of the sizzle off the summer oil price spike.  I am an optimist, and I don't want oil to crash it's own demand so perhaps there is no real harm in this?  I wanted t load up on oil when I heard this news  but I will wait and see if oil has a dip for a week or two,  I'm not expecting that actually.  At least not for more than an hour or two.  This is not a coherent energy policy.

The announcement has knocked oil down to $100, but considering the massive release that was announced, the drop is pretty small.

I think the market is starting to wise up to the fact that there are long-term supply issues. While real-time prices dropped, the futures strip actually increased in price, and many oil stocks are higher now than when it was announced.


Cost inflation, labor supply, and lack of materials continue to hamper drilling. I don't see any material supply increase happening anytime soon.