Wressle at $200 Oil an Higher6 Feb 2022 08:52
Oil price is going to some stupidly high numbers. We are currently at $93 and shale is not coming back fast enough and that applies across the rest of the world with no massively increased production. Demand for oil is going nuts and governments answers are to just keep stimulating. The US Iran agreement could give a small temporary dip to the price, but that is all.
Initially I thought oil was going to $100 to $120 and now I see much higher…$200 even $300 .
At the moment there is not enough supply response. It is too late and oil price is still rising. For a response to oil price in 2023, those wells need to be drilled now. last week we saw moves at 2 dollars daily. Then it will moves in 5 dollars…my belief is it will explode much higher.
Australia is planning on opening up I read. Everyone wants holidays and the demand for long haul is incredible with bookings beyond pre covid levels at the end of January. Oil price will become an absolute wrecking ball.
Central banks are worried about inflation. Even used cars are appreciating in value. If energy prices stay up in the UK we should expect more interest rate rises. It would appear to me that we have screwed up the whole green thing. What’s interesting is we are being given stimulus payments and grants which in itself is inflationary but, there is nothing to cut the demand for oil or gas there..This is not a good demand supply response. Makes no sense to me.
My prediction is Central banks are going to panic on the price of oil. But think, if they keep raising interest rates won’t this make it harder for oil companies to fund exploration ? Ironically this could push the price of oil higher. The Fed and interest rates are going to go much higher but this will not curb oil demand. I see continuous interest rate rises and the Fed doing some really stupid ones. If the Fed does this the likes of Apple will half, but guess what....oil will just keep going up.
People will soon start complaining about the price of oil, as with gas. Inflation always hits people on lower income. People already are struggling. When the price of oil goes to 200 or 300 you can not Heid that any more.
Where’s that leave Union Jack Oil then ?…Wressle and Keddington will go beyond David’s wildest dreams for revenues plus whatever else David has planned to drill with all of this money he has.
Oil production companies like Union Jack Oil are in for one hell of a ride over the next few years…roll on the share buy backs.
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