RE: House of cards is tumbling further...14 Oct 2021 11:13
The momentum for oil is moving in one direction, up.
OPEC + are playing the biggest role and choosing not to give more oil as it wants a higher price with a threat of stagflation.
IEA says more investment is needed in to renewables.
The thing is everyone says this oil price rise is temporary, FED, IMF , so do not invest in to fossil fuels and blame it on bottle necks and supply chains.
Spot prices need to be high for more than one winter to encourage investment with commitments for many years. The signals are wrong to investors and creates confusion. Why should anyone commit capital to oil an gas? Yet we have a shortage of hydrocarbons.
Here's a good one too , Putin said he was 'obligated to meet our long term contracts.' But when you think they are holding back supplies because they want to get Nordstream 2 boxes ticked. Russia is giving a taste of what is to come with geopolitics.
We will see a squeeze this winter. Approval for Nordstream 2 will take a couple of months at least.
Should energy markets believe Putin in not using energy as a weapon ? Remember that Energy an foreign policy in Russia go hand in hand.
The high gas prices move countries to coal and oil. Renewables are intermittent. The wind turbines in the UK are not turning. This problem will be here for a long time to come. China is ordering coal mines to increase production.
With Brent now heading for 85 Dollars, Wressle is on course to net Union Jack Oil many, many, many millions of pounds per year.
Today's share price seems very cheap indeed.
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