Wednesday, July 21, 2021

Oil Surges -- Apparently Traders Finally Read The Small Print In The OPEC+ Agreement -- July 21, 2021

Is anyone paying attention? 

Monday, last, was a huge buying opportunity.

Today, WTI:

  • up almost 5%:
  • up over $3.00 / bbl
  • now trading at $70.31

What's MNRL doing? Up 3.44%; up sixty-five cent; trading at $19.53. 

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2 comments:

  1. Demand is back, international rig count down by about 50% for over a year. COVID does not stop oil well depletion rates. Just my opinion......

    ReplyDelete
    Replies
    1. Yes, there are two schools of thought: you have just expressed one of them --- all the data suggests there will be a huge supply-demand mismatch in 2022 with supply unable to keep up with demand; the other school of thought is that the oil patch can manage (somehow) to keep up.

      I see it over at twitter: some analysts suggest that additional 400K bbls per day each month for the next fourteen months is a huge "overshoot" and will lead to lower prices. Others say that additional 400K bbls per day is well short of what is needed.

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