Quote:
Originally Posted by Jim Blake
Well everything is banging on all cylinders today!
Amazing not long ago there were companies paying to get rid of their oil and today it's 81.50.
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What a nice run we're having!!
I think this rally has some legs for a while yet. US hyper shale growth is in the rearview mirror. OPEC stated quite a wile back that they are defending $60 oil so we have a long term floor at that level. China's CCP has instructed their people to secure energy supplies at any cost just a couple weeks ago. Huge underinvestment in traditional energy sources due to the greentards in the US, Canada and Europe. North American producers are emphasizing returns to shareholders and financial discipline rather than focusing on increased production. More takeaway capacity on the horizon.
Funds are going to be looking at increasing exposure into year end into a hot sector rather than look like idiots for missing out. Watched an economist today talking about justifying oil investing by focusing on companies working on carbon capture etc. More or less the oil companies are making so much money at these prices that institutions are starting to have a hard time ignoring the returns.