Clearly in a "crude oil super-cycle."
WTI: tonight, 10:40 p.m. CT, May 4, 2022 -- $108.20.
Warren Buffett telegraphed this during the Annual Meeting last weekend.
His "quote" posted on the blog.
Perfect storm:
- energy transition is dead ("everybody" now realizes that)
- Putin's War: a lot of Russian oil is taken off the market
- one-two-three punch: previously posted
- we have an administration in Washington (DC) that doesn't understand what's going on and will (purposely or inadvertently) do everything to kill the US oil industry
- this administration in place for three more years; three more years to exacerbate situation
- windfall profits tax will exacerbate price of gasoline at the pump;
- US E&P under-capitalization (multiple reasons)
- financial institutions coordinated moving investments to non-fossil fuel companies
- capital being moved from fossil fuel to renewable energy, tech, healthcare
- fossil fuel out of favor with managed funds
Tonight: link here.
Remember: during 1Q22, Warren Buffett / BRK bought enough CVX to make it the third or fourth largest equity holding in the BRK portfolio. Now, more OXY.
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