The builds in crude over the last couple weeks have been incredibly strong the last couple weeks. How long before OPEC cuts production? Have we reached a point of no return with EV's and we are seeing the results in excess supply?
Interesting times.
Jim
I doubt there are enough EV's out yet to influence supply that much.
ICBW
John
Probably not, but something is going on. Demand has fallen off a cliff. Remote working? Green energy? I expect we will see sub $3 gas this weekend in my area. I saw it for $3.04 yesterday.
Jim,
That's not it. The EV and fake green, anti environmental energy schemes are being exposed after going from the promises to the real markets and greatly under performing across the board (despite the MSM cheerleading articles twisting it differently). Despite the crony capitalism and political agendists trying to milk as much as possible out. The jig is up.
Even Biden, in his address last month stated the we'll need fossil fuels for the next decade and beyond. Instead of shutting down drilling and fracking, he's doing the opposite. A major promise of his campaign platform was to eliminate fossil fuels. He has quickly realized how impossible and catastrophic that would be, especially since it would make the US more dependent on foreign oil.
The Middle East embarrassed him and gave him the proverbial middle finger before the 2022 elections when he came begging for more oil to help the D's in the election.
How comical this appeared to them. The guy trying to completely put their countries out of business and turn them into 3rd world, destitude countries with nothing to feed their economy and claiming for years that oil selling entities are extremely evil....and destroying our planet.........came begging for more of that oil.
The lifeblood for every developed country.
The reality checks have been very powerful and greatly impacted US energy.
The past 6 months has featured the biggest increase in NG supplies gushing into the market and turning the huge storage deficit into the surplus.
Do these graphs below look like fossil fuels are dead? The NG rig count will start crashing because of the lowest price in 20 years, outside of a couple of very brief spikes slightly lower than this.
https://ycharts.com/indicators/us_oil_rotary_rigs
https://ycharts.com/indicators/us_gas_rotary_rigs
Knowing Biden’s obsession with destroying Putin, that might be the biggest motivator for him right now.
the more the us produces, the lower the prices and the less Russia sells and at a lower price.
Europe will be taking a lot of US ng.
"The past 6 months has featured the biggest increase in NG supplies gushing into the market and turning the huge storage deficit into the surplus"
Fair statement. But weather has to also be recognized for its part in this. I'm 62 and have lived in NE Ohio my entire life. I don't believe I have ever experienced a warmer winter than this one. My Jan NG usage was half of what it was last year.
And even you have brought up the effect of windmill electric and its effect on NG demand in the winter. Enough that the EIA keeps track of it.
Yes, I'm aware the number of wells has been increasing. But demand has not been increasing. And I read that Biden wants to release another 26mbbls from the SPR?
I know that crude isn't going anywhere. I was watching the speech Biden gave where he said that we were going to need crude for at least 10 years and he got laughed at. I'm sure you have heard the expression, How do you eat an elephant? One bite at a time. I suspect that a couple bites have been taken out of that elephant.