The Energy Report: Long Shadows – Investing.com

The Energy Report: Long Shadows – Investing.com

A bigger than expected drawdown was overshadowed by a massive gasoline supply build that had more to do with year-end tax shenanigans than it did with real supply or demand. The OPEC Plus expected 400,000 barrels a day supply increase did little to soothe markets as the group is already short of their quota and almost have no chance of getting over quota, especially with Libyan oil production being off as much as 700,000 barrels a day. Oil traders are also talking about the great rebalancing as commodity index rebalancing is coming due.

While all this noise may fluctuate prices in the short term, the fundamental outlook for 2022 is looking more bullish as the lack of oil investment that we have been warned about for years, as well as pie in the sky expectations for renewable fuels, is already falling short. I guess when you try to build your energy future on technology that does not exist, you might run into a few problems.