I've been long energy, more notably NG and Coal, I dumped NG when Freeport fire happened. I do have a bunch of oil guys, SU, CNQ, CVE, DVN, EPD. The month of June has been tough as many of these dropped 25% fast, that's ok, they up a bunch on the year.
With that said, the oil situation is getting worse.
SPR, the Strategic Petroleum Reserve has dropped from about 650 to under 500 million barrels. Most of that happened within past 6 months, roughly 95 million barrels. The US is deploying about 1 million barrels per day, so we can keep this up for another 1 year to 2, but we haven't' had any major disruptions either (a hurricane).
In the past 2 weeks, the SPR added about 14 million barrels, we had max capacity and yet oil stocks still dropped by 3 million barrels. Cushing is getting lower. We cannot add supply, so I think price needs to go up and up enough to start destroying demand significantly.
Recently last week at the Summit, Macron pulled Biden aside and said UAE does not have any more capacity and MBS (Saudis) has very little extra capacity. That really means that we need the US, honestly, we desperately need the US to increase production as fast as possible. That's not going to happen in current political environment. We need Canada to increase production, that aint happening there either with JT in charge.
It is going to be a crazy fall
With that said, the oil situation is getting worse.
SPR, the Strategic Petroleum Reserve has dropped from about 650 to under 500 million barrels. Most of that happened within past 6 months, roughly 95 million barrels. The US is deploying about 1 million barrels per day, so we can keep this up for another 1 year to 2, but we haven't' had any major disruptions either (a hurricane).
In the past 2 weeks, the SPR added about 14 million barrels, we had max capacity and yet oil stocks still dropped by 3 million barrels. Cushing is getting lower. We cannot add supply, so I think price needs to go up and up enough to start destroying demand significantly.
Recently last week at the Summit, Macron pulled Biden aside and said UAE does not have any more capacity and MBS (Saudis) has very little extra capacity. That really means that we need the US, honestly, we desperately need the US to increase production as fast as possible. That's not going to happen in current political environment. We need Canada to increase production, that aint happening there either with JT in charge.
It is going to be a crazy fall
