Bank of America is now predicting that Brent crude oil, which drives gas prices, will zoom to $120 a barrel by June 2022.

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""Gas prices have surged to a seven-year high of $3.40 a gallon nationally and are flirting with $4 in Nevada, Washington State and Oregon.
Bank of America is now predicting that Brent crude oil, which drives gas prices, will zoom to $120 a barrel by June 2022. That's 45% higher than current levels.""

Might be a time for people with trucks and long commutes to start looking for a 4 cylinder beater daily driver....

 
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BNO - Brent Crude ETF. I made money a couple of times during up/down cycles on Brent price.
 
Maybe OR we could have depressed prices like we've had for the past 5-10 yrs where OPEC countries weren't adhering to restrictions and oversupplying the market.

A lot of people weren't aware that gasoline was underpriced as producers were oversupplying in their attempt to bankrupt frackers by driving the price down.
 
If the price stays high, it will make domestic production economically feasible.

As the story indicated, there is a lot of uncertainty, so domestic producers are moving slowly.
 
If the price stays high, it will make domestic production economically feasible.

As the story indicated, there is a lot of uncertainty, so domestic producers are moving slowly.
diamondback just announced today that they'll keep their production flat for 2022. at least that's what they say right now.
 
Bank of America's ability to predict the price of oil in June of 2022 is marginal at best. It's a educated guess, better then the average person's guess but Bank of America can't predict the future because no person or company can.
 
Bank of America's ability to predict the price of oil in June of 2022 is marginal at best. It's a educated guess, better then the average person's guess but Bank of America can't predict the future because no person or company can.
No, and I'm not taking them as gospel. However, one might also consider they have some insight as oil production is a capital intensive operation. They have some visibility into who is deploying capital and how. So their crystal ball may be less cloudy than that used by others.

Not perfect, and not immune to error. But they, and others like them, have some inside information others don't.

It's just another data point to consider. Not the card upon which one should go "all in!"
 
Certainly glad my household is down to just two 4 cylinder sedans that average at least 38 - 44 mpg on highway and over 28 - 30 in town stop and go driving. I almost fainted at the SHELL gas station the other day as I saw the young (she looked about 17 years old to me?) lady gassing up her very large Lincoln 4 door SUV next to me. Her vehicle was full of young kids looked like from diapers to pre school aged kids and she had those gas pump numbers spinning like a slot machine and as I pulled away she was just passing $77.00 mark. OMG. I thought to myself I would not want to see her grocery receipts these days. YIKES.
 
Maybe OR we could have depressed prices like we've had for the past 5-10 yrs where OPEC countries weren't adhering to restrictions and oversupplying the market.

A lot of people weren't aware that gasoline was underpriced as producers were oversupplying in their attempt to bankrupt frackers by driving the price down.
What things do they (who ever they are) do to manipulate and depress prices? Is it inside the USA or a group of NWO characters we often hear are to blame for all economic woes? I only recall good true low gas prices the last 4-5 years and it feels like they? someone? brought it right back to the expensive numbers we had for several years. I get what you saying about over supplying. So who was doing that? I am guessing you mean OPEC? Is there any others? I really don't know and am asking. Not trying to do an "ah ha" moment. If I understood all the things that go into oil price manipulation I would be $$$$.
 
What things do they (who ever they are) do to manipulate and depress prices? Is it inside the USA or a group of NWO characters we often hear are to blame for all economic woes? I only recall good true low gas prices the last 4-5 years and it feels like they? someone? brought it right back to the expensive numbers we had for several years. I get what you saying about over supplying. So who was doing that? I am guessing you mean OPEC? Is there any others? I really don't know and am asking. Not trying to do an "ah ha" moment. If I understood all the things that go into oil price manipulation I would be $$$$.
Prices are depressed when there is more supply compared to demand.

The answer to your question was in the comment to which you replied.

OPEC countries weren't adhering to restrictions and oversupplying the market.

They were all producing more than they agreed to produce. They drove the price down.

I think part of it was to push out the North American production. Produce their cheaper oil and drive others out of the market and they can then cut back on production and reap the benefits of higher prices when production drops.


Just 18 months ago we had far too much production and no place to put the oil. April of 2020 comes to mind.

One cannot look at just last year to this year prices. Look at the trends the past 5-10 years to see where we really are today.

Sure, I'd like to pay $1.38 or whatever I paid for RUG in April or May of 2020, but that's not realistic today.

I suspect, at least where I live, that about $3/gallon RUG is in line with long term price trends.
 
Thanks for the post. Brent is $82.55. I’ll report back June 1, Inshallah. Meanwhile, the oil sands producers are cash cows, with Canadian Natural Resources generating a net profit of over a billion US dollars per quarter. They are in no hurry to increase production but are acquiring natural gas producers to hedge their steam production costs. Also, most US shale oil producers are trying to tidy up their balance sheets and finally give their shareholders a real return on their investment. Watch the Baker rig count to get an idea if they are going to get going again. It comes out every Friday.
 
Might be a time for people with trucks and long commutes to start looking for a 4 cylinder beater daily driver....

Problem is, 4cyl beater daily drivers, if you can even find one in some areas, are at an all time high as well.

On the news this AM they were showing the prices at the pump somewhere in Los Angeles. Regular unleaded was $5.99/gal there. Premium was $6.59.
 

Prices are depressed when there is more supply compared to demand.

The answer to your question was in the comment to which you replied.



They were all producing more than they agreed to produce. They drove the price down.

I think part of it was to push out the North American production. Produce their cheaper oil and drive others out of the market and they can then cut back on production and reap the benefits of higher prices when production drops.


Just 18 months ago we had far too much production and no place to put the oil. April of 2020 comes to mind.

One cannot look at just last year to this year prices. Look at the trends the past 5-10 years to see where we really are today.

Sure, I'd like to pay $1.38 or whatever I paid for RUG in April or May of 2020, but that's not realistic today.

I suspect, at least where I live, that about $3/gallon RUG is in line with long term price trends.
Thank you. I am interested to know who, OTHER than OPEC has such power.
 
Thank you. I am interested to know who, OTHER than OPEC has such power.
It's easier for OPEC to control their output than it is to get a billion consumers to control their consumption.

As long as we need oil so badly for our way of life, the power goes largely to the producer. Coordination by buyers is much harder due to the sheer numbers.

However, even OPEC isn't perfect in their power and control. If a nation needs more revenue, they can cheat on their quota, which ultimately drives prices down and reduces their power.

When something is in demand, the producer has an advantage.
 
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