The Rokslide Stock Traders Thread

[2531usmc]

I’m with you Silver Wings! I posted this on 9 March:

“Im not a betting man, but if I was I would be betting this week and next week is the max hysteria for oil prices.

XOM had a huge run up before the war started. With the start of the war, XOM has trended up but nothing spectacular like you would think. My guess is the market is already pricing in demand destruction.

And if I was a betting man, I would be putting in some XOM shorts”

The market is still pricing in demand destruction. Markets will adjust, oil will be rerouted and prices will drop.

 

[Sawitrightoff]

Didn’t Trump say that the U.S. has all the oil it needs, and only 1% of what goes through the Strait, has a U.S. effect? Then why did U.S. prices jump? Are the oil companies gouging the U.S. citizens to reduce pain of others?

 

[wyosam]

Didn’t Trump say that the U.S. has all the oil it needs, and only 1% of what goes through the Strait, has a U.S. effect? Then why did U.S. prices jump? Are the oil companies gouging the U.S. citizens to reduce pain of others?

Because it’s a global commodity. We can say oil from that region doesn’t affect us, but a supply disruption anywhere on the planet drives the price of oil up. The idea that being able to meet all our oil needs domestically means price protection is a fallacy. Always has been, always will be.


Sent from my iPhone using Tapatalk

 

[Q_Sertorius]

Didn’t Trump say that the U.S. has all the oil it needs, and only 1% of what goes through the Strait, has a U.S. effect? Then why did U.S. prices jump? Are the oil companies gouging the U.S. citizens to reduce pain of others?

Trump is correct that we have a sufficient supply. But when global prices rise, our oil becomes more valuable on the world market. Which means that our domestic prices will rise. Which usually makes it possible for marginal fields to increase production and add to the supply. When global prices fall again, those marginal fields will shut down again.