The editors at Seeking Alpha, where I contribute occasionally, requested my take on the ascent of oil prices.
The brief June 10th article (and excuse my sub-par writerly efforts) cuts to the chase:
There are time lags between capital spending, production coming on and consumption’s varying waves post-pandemic.
Independent producers hold a lot of influence; they carry a different kind of burden than the national oil companies (NOCs).
The crux of the challenge is simply a supply and demand mismatch. Oil supply and demand are inelastic. These inelasticities are facing headwinds.
Yes, prices can go higher.
Volatility is everywhere.
See: “Oil Influenced By Waves Of Demand, Supply Headwinds“
On You Tube Commodities Investor Call
In addition to weighing in on Seeking Alpha, Tyson Halsey of Income Growth Advisers, held an investor call on You Tube on May 26th. He lured me into participating on the call with a list of energy stocks, publicly-traded firms that were heavily buying back their own stocks. The guys on the call were largely technical-type analysts, very experienced. At minute 48, Tyson asks me to weigh in. I explain my very fluid process of analysis looking at fundamentals, my influences, etc. An interesting repartee occurs until the end.