....even at a time when global supply is already lagging demand:
![]()
[https://edition.cnn.com/2022/03/08/politics/california-gas-prices-newsom-tax-rebate/index.html]
In other words, use taxpayer money to provide relief from fuel prices that are high because they are heavily taxed to begin with.
(You really couldn't make this stuff up)
And this is not an isolated case, either; many western governments around the world have been introducing fuel subsidies in recent months.
Viewed yet another way:
November 2021:
Governments prancing about and remonstrating at COP26 with calls for reduction in the use of fossil fuels.
March 2022 (a mere 4.5 months later):
Doling out cash payments that have the effect of stimulating demand for fossil fuels.
(Again, you couldn't make this up)
In summary, in their infinite wisdom, they have for years applied policies that forced the Supply Curve to the left, while now providing cash handouts that keep the Demand Curve moving to the right.
If you sought to design a strategy that kept increasing the oil price, you couldn't find a better on than that one right there.
The following thesis was valid 9 months ago, and it has become an even higher conviction call today (even without the Russia-Ukraine situation): https://hotcopper.com.au/posts/55091411/single
.
- Forums
- ASX - By Stock
- WDS
- Stimulating oil demand with government subsidies...
Stimulating oil demand with government subsidies...
-
- There are more pages in this discussion • 24 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add WDS (ASX) to my watchlist
|
|||||
Last
$27.42 |
Change
1.040(3.94%) |
Mkt cap ! $52.06B |
Open | High | Low | Value | Volume |
$27.40 | $27.77 | $27.03 | $173.3M | 6.320M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
7 | 5050 | $27.41 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$27.45 | 7000 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
6 | 4050 | 27.410 |
14 | 17635 | 27.400 |
2 | 2000 | 27.380 |
3 | 3809 | 27.370 |
3 | 14187 | 27.350 |
Price($) | Vol. | No. |
---|---|---|
27.450 | 7000 | 1 |
27.480 | 2000 | 1 |
27.490 | 3190 | 3 |
27.500 | 6135 | 4 |
27.510 | 100 | 1 |
Last trade - 16.10pm 27/08/2024 (20 minute delay) ? |
Featured News
WDS (ASX) Chart |
The Watchlist
SBW
SHEKEL BRAINWEIGH LTD
Dani Nadri, Country Manager Australia
Dani Nadri
Country Manager Australia
SPONSORED BY The Market Online