Monday, September 27, 2021

Notes From All Over -- Part 5 -- The Surging Price Of Oil -- September 27, 2021

$76.12. After the close, WTI traded up almost another one percent, almost another 70 cents. This evening, WTI is trading at over $76. 

Price of WTI: I posted Cathie Wood's tweet when she first tweeted it. The tweet being re-tweeted at this link. What a doofus. I said so at the time. I can't remember my exact words, but surely my sentiments. Here's the post, back on June 4, 2021.

I remember Jim Cramer also suggesting the price of oil had peaked. It's interesting. I suggested in a post that the price of oil can take wild swings.  I posted a screenshot of the historical price of oil to prove my point. I've long forgotten but I think I thought there was a chance that the price of WTI could surge. Whatever.

But what in the world drove WTI from $50 to $75 in such a short time this time around?


  1. I think its EVs charging overnight.
    -China has not been buying coal from Australia.
    -NG spot price in Asia and Europe has been hitting $25 per MMbtu. Above cost for oil to make electricity.
    -Coal prices have doubled recently due to electric power demands.
    -Rig count has been down for nearly 1.5 years. Need to drill baby drill to offset depletion rates of existing wells
    -Not a problem with enough generating capacity, problems and cost to fuel the electric power plants.

    For my home electric I should have locked in a 3 year fixed rate of 6 cents/KWH in August. Now the rate is 7.4 cents for a 3 year lock. Likely due to NG price increase.

    1. But "overnight"?

      Every data point was "long term."

      The reason: prices are based on the "last barrel."

  2. These folks want EV's to work sooooo bad. Cant see reality if sat down and had lunch with them