....even at a time when global supply is already lagging demand:...

....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

.