Good to hear everyone is getting along. I dare say OEL and BYE...

Good to hear everyone is getting along. I dare say OEL and BYE will both be potentially good buys if the price of oil remains where it is. $80 BOE to me, is not to hot and not to cold sort of price. This financial environment gives OEL a PE of 2 and BYE a PE of 8 if I have done my maths right.

In other news


(Source oilprice.com)

To me NG is way too high as US fracking produces a lot of gas and can be quickly brought online. Obviously a lot of it is going to Europe. And it has to. Because for Germany to survive the winter it needs Nord steam 1 running at 100% and full gas reserves. Nordstream1 is running at 20% currently. So it wouldn't matter if they were are at 120% reserves it simply is not enough. The answer is to switch on Nord steam 2, or freeze. But what will the Russians expect in return, if Nord steam 2 is switched on? Who's your daddy now?

Looks like Germany might be exiting the US sphere of influence and entering the Russian one. The crunch point will be December-Jan. When the US midterms are done, making Biden a lame duck president. The US strategic reserve release ends. and Germans are experiencing a German winter on a first name bases.

The DXY seems to have stabilised. The AUDvsUSD is falling and the 10 year treasure bonds interest is sneaking up. China looks like it might be in financial collapse. I said previously that everything was heading into the green and I expected oil prices to drop to the $80s. Now I see us treading water but slowly sinking, as the world meets an unhedged oil price and the base section of Maslow's hierarchy of needs.

All disclaimers. Grab your popcorn. And if we make it to 2023, party like it's 1999. I'll be out the back with a bottle of red.