Well now that the East-West pipeline is out of action, oil flow now falls down to what they manage to sneak through. Plus with buffers thin and China starting to buy again, crude prices might finally increase as some initially expected.
We might be on track for SPR to hit operational minimums right around mid-term elections.
I was asked who could be that stupid to buy oil now after that run. I said I am, because diesel crack spread is at all-time high and I like to add risk there.
But now everybody knows that oil did rise?
Everybody knew that oil was cheap and it can go to 5 times that price without any problem. I don’t know what will happen but I know what happens and that is why I keep buying since over a year.
Show me the incentives and I show you the outcome.
The cause isn’t the gas companies’ behavior, the cause is pathetic regulation.
Everybody’s kicking the can down the road until stuff happens even if it requires antidemocratic and outright authoritarian measures (see e.g. the illegal Compact Magazine shutdown). And that won’t change until they’re removed from power. That’s why an ever increasing share of the population votes AfD, because otherwise it’s just more of the same old same old.
