Investing And WTI -- October 19, 2022

I mentioned this to a reader earlier today:

I have never been happier with my current investment portfolio, with my "new money" allocation strategy, and with my overall investment strategy. 

For the first time in fifty years of investing, I feel like I'm "hitting on all cylinders." 

On top of this, the US macro-economy looks like it has been through the roughest patch. Folks are getting used to 5% interest rates; companies are pricing in highest costs and passing those costs on to consumers, and consumers seem to be accepting the higher costs. 

The downside (actually two):

• $7-gasoline in California and the risk of $5-gasoline across the rest of the US; and,
• the price of diesel.

There is no quick fix for the diesel issue. It's a refining problem and that's not going to change (ever?). Maybe RBN Energy will do a blog on the high price of diesel and what can be done about it. 

Today, President Biden announced another 15-million-bbl release from the SPR and WTI surged $3 / bbl. LOL. 

Anyone following this story understands what's going on. When the president announces another 15-million-bbl release from the SPR and no plans for any export ban, and WTI surges $3 / bbl one needs to sit up and take notice. This should be very, very concerning for the consumer (not concerning at all for those investors long in oil).

What's scarier? The SecEnergy has no clue.

So, how did oil companies do today?

• EOG: up almost 5%; up over $6 / share; trading at $130;
• DVN: up over 3%; up over 26 / share; trading at $72;
• XOM: up almost 3%; up almost $3 / share; trading at $104;
• CVX: up over 3%; up over $5 / share; trading at $168;
• OXY: up only 1%; up less than a $1 / share; trading at $68;

Refiners:

• MPC: up only 0.6%; up 65 cents / share; trading at $109

By the way, with regard to the 15-million-bbl release, the mainstream media got it wrong again, and once folks realized that, WTI surged.