The situation with oil is just totally illogical. This is a nod to forecasting and the market.
Real oil is being bought right now in a supply crunch for $150 a barrel. This info comes from those in the know, who understand the behind-the-scenes situation. There’s a SHORTAGE of physical oil, and you can’t just flick a switch to stop or start refineries – it’s a complex tech process. Oil production, even if the Strait of Hormuz opens up, will take another year to a year and a half to get back to pre-war levels.
I’m not even mentioning that the price will include a higher risk premium and extra fees from Iran. Let’s not forget about depleted reserves and damaged infrastructure.
Seriously, what’s there to discuss? The Strait of Hormuz is still closed.
Against this backdrop, futures priced at 80-85 look like pure deception, a smoke-and-mirrors game.
Basically, I’m not buying the hype around US-Iran negotiations, even though oil traders seem to be living in a fantasy world with rose-colored glasses, seeing ponies and rainbows around them.
I bought at the current prices and $BZ and $CL – time will tell if this bet pays off.
DYOR
Real oil is being bought right now in a supply crunch for $150 a barrel. This info comes from those in the know, who understand the behind-the-scenes situation. There’s a SHORTAGE of physical oil, and you can’t just flick a switch to stop or start refineries – it’s a complex tech process. Oil production, even if the Strait of Hormuz opens up, will take another year to a year and a half to get back to pre-war levels.
I’m not even mentioning that the price will include a higher risk premium and extra fees from Iran. Let’s not forget about depleted reserves and damaged infrastructure.
Seriously, what’s there to discuss? The Strait of Hormuz is still closed.
Against this backdrop, futures priced at 80-85 look like pure deception, a smoke-and-mirrors game.
Basically, I’m not buying the hype around US-Iran negotiations, even though oil traders seem to be living in a fantasy world with rose-colored glasses, seeing ponies and rainbows around them.
I bought at the current prices and $BZ and $CL – time will tell if this bet pays off.
DYOR