Brent 83.70 $ and rising.11 Oct 2021 09:43
The oil price is not a day to day thing, it is a much broader picture.
My thinking is that the exposed and short calls will be punished by the market. Big companies optimise by looking at decades and spreads, but, this year the price of oil has changed. Many have not seen this coming.
The extreme we are seeing here is something new. The fundamentals of oil have changed. There will be some big companies go belly up when they close their positions.
Jet prices have spiked massively. For example , Singapore are now taking tourists from Uk, Spain…airlines crashed the website in 1/2 hour desperate to book. Everyone has spare money. We are seeing demand destruction. There is a dislocation with demand and supply. The price is going up an everyone is buying.
Most positions have closed. The market is bullish. Shale is dead.
There is massive debts corporate or government . Interest rates need to go up like a bullet to the brain. There is no solution. Inflation is not transitory as some may think.
Where the ceiling is, time will tell for now. A cold winter will see prices hit 100 Dollars.
With work to be carried out at Wressle and that will be very soon... I look forward to the revised flow rates. The partners will all be very happy, as the underinvestment in Oil and Gas is now reflecting in the oil price as they bank the profits.