Chris6> it's look pretty weak here 200k shares trading with an...

Chris6> it's look pretty weak here 200k shares trading with an hour in..

The price of oil is going down. A safe $85 has turned into $75+.

The story so far: Winter is coming for the northern hemisphere. Natural Gas, the backup to many renewable energy systems and which provides only 1/2 the amount of carbon dioxide per unit of energy compared to coal is now really expensive in the EU and Asia. So much so that they are burning Oil to generate electricity because it's cheaper. In China factories are running diesel generators to cover black outs.

Biden has asked opec+ to pump more and they have refused. Biden has asked the US frackers to pump more and they have refused. Iran seems hell bent on making a nuclear weapons and cannot be brought in for the cold to add their production to the world markets. There is talk of legislating for nopec, but that will cause more problems than it's worth. Biden has hit the wall.

So what does he do? Well apparently he is getting countries to dip into their oil reserves ( source *1). The idea is that if they can just get over the winter then all will be well and they can restock in the summer. This of course will bring down the price of oil as there is now more supply.

Here is the badger take:

If high prices are the cure for high prices. Then bringing the price down artificially will make the problem worse. Then again if we are moving to a carbon neutral world, Why do we need oil reserves /s? I mean except for roads, plastics, feedstocks, fertilisers, etc? What has oil and the Romans ever done for us?

All disclaimers:

Source
*1 https://oilprice.com/Energy/Crude-Oil/India-May-Join-Coordinated-Strategic-Oil-Reserves-Release.html