Barchart/Phil Lynn/9-12-2022
“Oil prices are coming back as the dollar pulls back and markets start to realize the world is running out of options. The Biden administration is already warning that they’re preparing for a December price spike and there is a big debate as to whether they should extend releases from the Strategic Petroleum Reserve that they’ve already drained to the lowest level since 1983. And the bigger issue is how are they going to replenish those supplies in the future.”
USAGOLD note: Prices in the energy sector dropped last week, but Flynn says the trend is unlikely to continue. Treasury Secretary Yellen warned early in the week that G-7 proposed price caps on oil could have the effect of spiking prices higher. Goldman says oil will go to $125 in 2023 despite the caps saying they’re “bearish in theory, bullish in practice.”
Chart courtesy of TradingEconomics.com
