There It Is: $90 -- February 3, 2022

But, don't take my word for it. Another day, another rally:

For Californians: ANS (Alaska North Slope) West Coast was trading at $91.08 (a three-day delay) suggesting that ANS West Coast could easily be flirting with $95. 

The White House is already preparing today's announcement: "President Biden is monitoring the situation closely."

The spread: between WTI and Brent continues to narrow.

Three things:

• some shale operators have breakeven prices in some areas below $40; some as low as $30, possibly lower;
• some shale operators are unhedged
• shale operators are already reporting blow-out earnings, free cash flow at prices well below $70

The bad news:

• about the only thing Jim Cramer is recommending any more: shale oil companies.

This inflation does not affect me, link here:

Ferrari NV announced that soaring commodity prices would begin affecting the prices of its new supercars. The average cost for an Italian supercar, made by Ferrari, is between $200k-$400k, making it one of the most expensive production automobiles globally (besides French supercar maker Bugatti). 

During a 60-minute earnings call with investors on Wednesday, Ferrari discussed better-than-expected fourth-quarter earnings as shipments jumped during the pandemic. However, the company explained that rising commodity costs would result in continued supercar inflation this year.

Susy Tibaldi, a luxury analyst at Swiss bank UBS, asked Antonio Picca Piccon, the CFO of Ferrari NV, since inflation remains persistent and 2021 was the first time the company increased prices by 2% due to inflation, "should we expect something similar in 2022?" 

Piccon responded, there "is some pressure on the energy on the aluminum cost and we will apply this price increase to consider for that, but we will also leverage."

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Crossing The Line