RE: Hello Royoboy1 Apr 2022 21:28
royoboy,
I am curious as to why a 180mm barrel SPR announcement hasn't sent oil below $105 .
My thinking is that the market is short on barrels today and this will be the case in the summer and continue to the end of this year.The sanction's impact will be worse than the SPR releases.
I have said in many of my previous posts here that Biden would panic... and he has.
Ask yourself why ? !
Also, I have spoken about labour shortages with US oil producers, many have gone into construction. That is where we are very lucky with Union Jack Oil having an experienced team. There are also supply problems with things like not be able to get hold of fracture sand or casing, steel pipes. There would be big logistical problems with an SPR release of this size and production would need to be curbed anyway if the bottlenecks got too great. Besides it take six months to bring on a well so again Biden's plan seems illogical.
Mr Biden's SPR is an acknowledgement that energy flows will be disrupted from Russia with sanctions for quite a while & will be very problematic. Russian exports could under pin high oil prices for the next few years. Also, Biden's decision to do this awful SPR release is a threat to the US energy security. There is a structural imbalance in oil market & SPR does not encourage producers - in fact history tells you that the Oil price rises.
Union Jack Oil - Strong Buy.
imo.