Buzz On The Street -- WT -- July 9, 2023

Locator: 45052OIL.

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WTI

It all comes down to this, reading the headlines:

• price of oil comes down to this: fear of recession vs cost of keeping oil in storage 
• keeping oil in storage keeps getting more expensive as JPow keeps raising rates
• backwardation: oil companies will get more for their oil if they sell now rather than waiting until six months from now
• as oil companies release/sell more of their oil now, they are setting "us" up for a shortage of oil six months from now

Me? My thesis? Outside of major geopolitical events, we're never going to see another shortage of oil in my lifetime.

I think oil company CEOs know that and they're going to start selling oil sooner than later.  

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Graduation Photo

Three weeks.

California high desert.

Soloed at "first opportunity."