Prices have jumped 40 cents already in my locale.
November 2021 oil was released from the US strategic oil reserve.
As the reserve was not refilled from the draw down I suppose US consumers are SOL for a repeat.
I guess our government forgot the buy low portion of the “sell high buy low” mantra.
Yep!
Sell our strategic oil reserves for nothing more than short-term political gains…and that leaves the US with lower reserves for strategic uses: what it was designed for.
Sounds REALLY smart! 
Cheers!
Murph
Hold your horses!!
But demand for oil is also a factor in the market, and it’s widely expected to grow this year.
“It’s just the rate of that growth that is in question,” said Matt Smith at data and analytics firm Kpler. He said much of that question comes down to China, the world’s biggest oil importer. As its economy has reopened, China’s been buying more oil, but not much more, according to Smith.
“People were expecting multiple millions of barrels per day of demand growth coming through from them, and we’re just not seeing that,” he said.
It is criminally absurd that they/we (the US govt) didn’t buy staggered futures contracts when they were priced [much] lower a few months ago. I thought they were doing it, but it turns out they didn’t. Had they bought those contracts, oil would be delivered each month into the SPR to replenish it, but the price would have been the lower price of those futures contracts in late 2022/early 23.
Odds are the very best moment to sell XOM
If you want to all complain about the government buying just remember you need to sell.
$4 gasoline? Cry me a river. I haven’t seen sub-$4 prices in a very long time.
You can find gas under $3 in Austin. I remember gas in the $2’s back in the late 80s early 90s. Honestly, it’s absurd that we seem to think that 30 years later the price is “high” when it’s just a double in 3 decades. I don’t get it.
I paid $0.65/gal in northern Atlanta sometime in 1997 or 1998.
[old man voice] Young whippersnapper. Back in the day, I’d get 3 or 4 gallons of gas for a buck. [old man]
OK. I didn’t buy it, my parents did. And I think I still have a jean jacket lying around somewhere with a patch bemoaning gas at $1 a gallon. And the uproar over that! The old mechanical pumps were not built to handle a price over 99.9 cents per gallon. It was the Y2K problem of the day. And the workarounds for that. Set the price on the pump at 1/2 the actual price, then double it. In your head. Without a calculator. Oh the horrors! Or drop the dollar from the price, then look at the amount of gas dispensed and add that to the displayed price.
Yup. The local media here is in full “pain at the pump” hysteria mode, along with the routine daily “severe weather” hysteria.
Seems something almost always happens in the spring to juice the price of gas, and everyone freaks out.
The COP I bought last winter had a fun day yesterday.
Steve
Lots of Russian oil flowing downhill these days to China.
I didn’t think this was a secret.
Goofy,
Whatever you are trying to say is very unclear.
No one said it was a secret. The point is not that China is buying Russian oil, we know that. The point is Chinese demand is not growing as much as expected. We are talking global demand.
We do not have the numbers admittedly.
China buying Russian oil weights on the price of oil globally because China agrees with the Western Cartel to buy Russian oil way under market values. That is why OPEC needs to try to stem the tide.
How does oil on a tanker flow downhill?
I expect XOM to drop like a rock in 2025.
Odds are a quick test of the 200 for WTIC
When oil is more permanently around $70 bl XOM trades closer to $60
I wont say when. I am not invested in trying to tear it down.
adding I will say it will be sooner than 2025. Odds are by the end of this year.
How about buying it in 2020 when oil briefly went negative? Seems like a little bit of all that Covid money could have gone to buying some excess oil for such a rainy day.
Yep.
But the responses we are getting:“[old man voice] Young whippersnapper. Back in the day, I’d get 3 or 4 gallons of gas for a buck. [old man]”
Ignoring the fact that:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCSSTUS1&f=M
What if the balloon goes up in Taiwan? Are our strategic reserves adequate?
Previously oil was released just before midterm election, not politically motivated of course, to lower gasoline prices after going hand in hand to Saudi Arabia & Venezuela and being laughed at by those countries. And someone forgot to reload the strategic oil reserve in case of a needed repeat. Make one wonder who is minding the store?
Remember 2008, when the government was buying more oil for the SPR, as the price of oil soared to new highs?
That is how things work in Shiny-land.
So NOW is the opportune time to refill?
Why would you assume the US wont get it for a good bit lower later on? What is so pressing about right this moment? Nothing we are going into a recession. The dollar and western currencies are still appreciating internally.
I do not get why the reserve needs to be replenished right this moment. In that light why assume anyone has made any sort of mistake? Because some lower down figure in the press has had the spotlight put on them? Okay you listen to just anyone. Or because some under secretary wants a headline? Okay you are used by just anyone.
Or is it because??? What must the strategic reserve be full right at this moment? BTW wasn’t the draw down only 50% or some figure in that ballpark?