Price Of Oil Diverges From The Josh Young Narrative -- November 19, 2022

Updates

November 20, 2022: see this post.

Original Post

Contributing?

Short-term, this week:  

First. This is perhaps the #1 reason; Europe has run out of storage space for more oil.

Second reason: Zydeco. This pipeline, when shut down, forces oil from Eagle Ford, the Bakken, and the Permian to be re-routed to Cushing. Cushing is WTI. Link here.

Zydeco: story everywhere. One link.

Long-term, 2023:

#1 reason: recession.

#2 reason: decreasing demand. 

Both subjects covered here. Highly recommend that readers subscribe to this channel:

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Huge Story
Can You Connect The Dots?
Novorossiysk

Novorossiysk: a city in Krasnodar Krai, Russia. 

It is one of the largest ports on the Black Sea.

The city sprawls along the shore of the non-freezing Tsemess Bay, which has been recognized since antiquity as one of the superior bays of the Black Sea.

The Novorossiysk Commercial Sea Port–with the market capitalization of $1.1 billion and shares listed at Moscow Exchange and London Stock Exchange–serves Russian sea trade with regions of Asia, Middle East, Africa, Mediterranean, and South America.

It is the busiest oil port in the Black Sea and the terminus of the pipeline from the Tengiz Field, developed by the Caspian Pipeline Consortium.

Novorossiysk is also an industrial city, dependent on steel, food processing, and the production of metal goods and other manufactures. Extensive limestone quarries supply important cement factories in and around the city. The town is home to the Maritime State Academy and Novorossiysk Polytechnic Institute [think "Houston" in this region].

Peter Zeihan first reported this a day earlier: 

Then yesterday: 

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Flashback

This was tweeted yesterday but tthe tweeter posted a Hess CEO quote from 2016 that probably still holds true.

Link here.

Advice to investors:

• have a plan.
• stick to the plan.