Earlier I said that I would explain later my thoughts regarding Nancy Pelosi and the Biden Surge, why I, as an investor see the Biden Surge as bullish. Well, it turns out I don't have to: a contributor over at ZeroHedge has done an incredible job.
In the near term, expect the price of oil to drop, the sweet spot being $90 - $100 but then to move higher. These buying opportunities don't come around often.
It will be fascinating to watch the price of oil. I never really thought the problem was a lack of oil but having said that, it seems that flooding the US market with oil is going to have a lot of folks saying, "please, no more oil. We don't need it." And prices dropping much farther and faster than we thought likely. Again, I don't know. Are we sailing uncharted seas?
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This data has been out for awhile -- US January crude oil production -- but either I was unaware or had forgotten: US oil production fell to its lowest since September, 2021. Source. This particular report was issued today, March 31, 2022. I assume the White House had this data for a few days and may have been the tipping point for the administration -- frustrated with "lack" of US oil production. One wonders.
I didn't pay much attention to the market today; it was looking fairly good earlier in the day, but now I see it had a particularly remarkable sell-off. Last day of the quarter; funds locking in whatever profits they might have. I don't know. Just a thought. Certainly, cheap oil should have been good for the market (other than the oils).
Right now, futures look good for tomorrow.
Oh, back to flooding the market with one million bopd. I wonder what the Saudis think of this? LOL.
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