This hit might actually drop the price of oil, Saudi Arabia needs oil to be over $100 per barrel this year the highest ever to fund their budget at their current output. Oil just isn’t going to spike that high with record U.S production( another summer E-15 waiver today) and other economies slowing( China, Canada). Plus we don’t need the SPR like we did in the 1970s we are the largest producer in the world now. They know Biden in an election year could absolutely unleash another 180 million barrels over 6 months like he did last time and we’d still have almost 200 million barrels of oil to spare. We can also do coordinated SPR releases with our allies. Venezuela is also picking up production a bit since we eased sanctions. They can’t keep these cuts up forever, it requires their price per barrel to be way too high.

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Oil regardless of short term pullback. * Saudi needs it around the $95 range to balance their books * Opec meeting in june likely for more cuts because saudi basically decides * Demand for oil exceeded expectations * 2 conflicts with major producers * summer demand * US SPR depleted 

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is oil dumping due to SPR releases?

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https://www.iranintl.com/en/202401096519 >Tuesday, 01/09/2024 >In its threat to the key shipping corridor, which the Houthis say is to block vessels to Israel in support of Hamas amid the Gaza war, so far, oil has been untouched, Reuters reported on Tuesday. >It is plausible, albeit unsupported thus far, that Iran, concerned about the freedom of its own oil shipments toward China, has taken measures to ensure that tankers remain unharmed in the Red Sea, responsible for 12 percent of the world's oil shipments, including those from Saudi Arabia. >Even in Tehran, Iran’s leaders know how ‘sacred’ oil is and to push the world’s leaders into conflict over its shipment, may be a step too far amid an escalating proxy war. Oil to 100+ soon as part of escalation, max pain for america when summer hits and biden cant release the SPR as he already emptied them to drive down prices. 📉📉📉

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American savings at decade low. This is Biden giving s stimulus after exhausting SPR to lower prices. No more stimmies from here on out. Spy 390 on the table

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Reminder - savings at decades low - inflation rising - opec focusing on cuts to keep oil higher - spr has been almost depleted - we were in an ai hype bubble Spy 390 back on the table

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there is only 1 play that is guaranteed. it's about the us SPR, strategic petroleum reserve. Presidents unload the reserve to drive down prices during election years. Trump or Biden will fill it up after the election. By next year oil will be above 100. Load up the bus on XLE, XOM or any other oil producer. XOM 130 leaps, XLE 105 Leaps, or if you want to gamble, which i personally will after the sell off today and the fuckery in the middle east - go for 125 XOM monthlies, 100 XLE monthlies. regardless, once the US starts to reload their inventories, oil is going to fly. Plus Saudi needs higher prices to fund their new massive development, and OPEC cuts will keep prices elevated as everyone follows Saudi lead.

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