$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?
I think its EVs charging overnight.
ReplyDelete-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.
But "overnight"?
DeleteEvery data point was "long term."
The reason: prices are based on the "last barrel."
These folks want EV's to work sooooo bad. Cant see reality if sat down and had lunch with them
ReplyDeleteYou are so correct.
Delete