September 18, 2023
by Michael
After languishing a multi-year lows until the end of June in the low/mid-70s range after Biden drained over 270 million barrels from the SPR to a near record low in hopes of pushing the price of gasoline lower and achieving short-term political goals…
… oil has since surged by more than $20, or 32% since the low of $71.57 on June 28, its fastest ascent since the start of 2022, a rally that was sparked by Saudi Arabia’s decision to voluntarily cut an additional 1 million bpd of production in addition to the reductions agreed by the OPEC+ group…
… thereby intentionally creating a production deficit of over 3 million barrels per day.
As such the price is likely to keep rising well into the 100s, as we first predicted two weeks ago, and as Chevron CEO Mike Wirth said today on BBG TV.
Virtually everything we buy has to be transported in some way, and so the price of oil factors into just about everything.
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