• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 6 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 22 hours Once seen as fleeting, a new solar tech proves its lasting power
  • 5 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 8 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas

Breaking News:

Oil Should Stay In Triple Digits: Analyst



The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Short Squeeze Sends Oil Prices Above $120

  • Damage at the CPC terminal in Kazakhstan may take up to 1 million bpd of crude oil off the market.
  • Trafigura's co-head of oil trading Ben Luckock said that an increasingly tight balance of supply and demand will mean oil prices are going to keep going up.
  • Crude prices rose towards $120 on Wednesday morning as funds reversed course, and started buying contracts again.

Oil pushed higher ahead of high-level meetings that may result in fresh sanctions on Russia, and as a vital Black Sea terminal may be disrupted for weeks following storm damage.

Overnight, Reuters reported that Russian and Kazakhstan oil exports via the Caspian Pipeline Consortium (CPC) from the Black Sea may (read: will, now that all commodities are weaponized) fall by up to 1 million barrels per day (bpd), or 1% of global oil production, due to storm-damaged berths, a Russian official said on Tuesday.

Pavel Sorokin, a deputy energy minister, said the second berth could also turn out to be damaged after initial information about one of the three being damaged by a storm.

Sorokin said the maintenance could take up to two months, which could lead to exports falling by up to 1 million bpd.

There’s a number of reasons why U.S. demand is robust, even with prices above $100/bbl; Brent will likely hit $150/bbl this year, according to veteran trader Doug King.

Meanwhile, speaking at the FT Commodities global summit, Trafigura's co-head of oil trading Ben Luckock said that increasingly tight balance of supply and demand will mean oil prices are going to keep going up, adding that oil prices are not only justified at this price, but they’re going to continue higher.

“I think you’ll see a huge backwardation and I do think you’ll see $150 this summer”

And in a stinging blow to the Fed's hopes that by crushing demand with an induced recession oil prices will tumble, Luckock said that all that counts at the moment is the supply side.

After WTI tumbled as low as $95 last week, and Brent trading below $100, as hedge funds puked, selling and shorting more than 1 billion barrels in the past month...

... today we are seeing the reversal, as funds squeeze and oil soars, with Brent last trading around $121, and WTI last seen just shy of $115.

Expect much more upside as the world realizes what Putin has known all along: the world can live without Russian oil...it just has to brace for energy hyperinflation.

By Zerohedge.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News