Once OIL PRICES get on a trend there seems to be a lot of momentum trading that drives the price to extremes .The policy of the USA has been for many years to keep energy prices as low as possible .
US$80 plus oil makes unconventional oil in most US plays profitable and greatly boosts alternative energy , especially if the POO goes to extremes .
Imo there are balancing factors now that were not there only 10 years ago .
There is probably enough shut in capacity to create a glut if OPEC and the Russians want to do so .
However the Saudis are not likely to try and destroy the Frackers again while they are burning money in a war and want to float Aramco .The last big drop in the POO hurt all the oil producers and helped destroy the Venezuelan industry
USA policy will be to encourage as much domestic production as possible and to use their influence on Saudi to increase production if prices get too high .
I do not think we will see oil prices go over US $100 in this cycle as in the past but who knows .
Oil demand increases relentlessly in spite of the rapid growth of renewables but renewables in the LONG run will win .However the Age of Oil will continue long enough for us to multi bag in out investments in Buru if the Oil Gods are kind .
Will we truck some oil to WBH this week ????
gltah
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