WTI Hits $104 -- Up 3.24% -- Up $3.245 -- Natural Gas At $6.977 -- 12:52 P.M. CT -- April 13, 2022

Updates

Later, 1:10 p.m. CT: while writing the note below, oil hit the $104-mark. 

Original Post

Unfortunately, President Biden has no more arrows in his quiver to drive down the price of crude oil. Mixing metaphors, but still a "weaponized" metaphor, he shot his wad when he announced the most massive release of oil ever from the SPR.

• SPR: can't release any more
• Saudi Arabia:
• won't take phone calls from Washington (DC)  if they have to do with oil;
• has no spare capacity
• OPEC says impossible for cartel to make up loss of Russian oil
• sanctions on Russian oil yet to take effect
• biggest problem: keeping the Russian oil industry running
• already, one Russian spokesperson says the country is willing to sell oil and oil products at any price to maintain integrity of Russian oil sector
• Libya: probably losing upwards of a million bopd; off and on; not dependable
• Canadian heavy oil
• this is what is really needed
• Keystone XL was built specifically for bringing heavy oil to US gulf coast refiners
• California: a special case
• an "island" when it comes to crude oil
• the state has more than enough to be self-sufficient
• largest refiner (?) in state with employee-led work stoppage

So, if you are a trucker supplying gasoline to California and Arizona, if coming from the north, would you want to turn right (to the west) or turn left (to the east)?

Meanwhile, natural gas will soon have a 7-handle. Right now, natural gas is at $6.941.