No. of Recommendations: 7
>>This is spot on. The world is awash in oil supply and the US is producing, I believe, more than any country ever has at any time. Regular Unleaded in my town is $2.69 a gallon.
I think the operative word is "world". The US, though large as both extractor and consumer of oil products, is still just one (large) cog in a gigantic machine. Other than local fuel taxes, I think it's fair to say most of the drivers of oil and pump prices in the US originate outside the US.
Jim>>
Obviously, that’s true. But the narrative is quite consistent globally too. Not to mention, West Texas is an increasingly significant issue here (separate matter)
On consumption and manufacturing, China the undisputed leader in EVs & battery tech, is moving heavily away from fossil fuels—its consumer share of EVs now the largest in the world: 40% and growing as it manufactures cheap EVs for domestic and export. On the production side, giants like BP are scrapping or amending renewables plans and re-upping fossil fuel production. As WE embark on drill baby drill.
So, you have a really pretty amazingly confluence of bearish supply and demand price developments evolving. The world’s largest PRODUCER now saying record all time oil production is…silly LOW. Yes, that’s our GOVERNMENT not the CEOs..this is not a typo about-face.
Meanwhile..on demand..
China is now leading the world in EV & battery production and sales—with a rapid growth runway……
So Demand, which continues to have major secular headwinds from ever increasing renewables (small shares growing at fast rates)…now meets Supply.
Supply:See Trump, see Europe and the about face by players like BP, it’s euro regulators who quietly now see fossil fuel production as a matter of national security especially given geopolitical. A major change recently.
The landscape has changed radically. 2015 seems like a century ago.
