Nobody expects today's high prices to last and we could very likely get back to the low $60 [per barrel] environment we faced just a few weeks ago. Experts say the unique geology of California's fields, and the nature of its heavy crude, make new projects, and efforts to pump more oil out of existing ones, costlier and more energy-intensive than drilling in other parts of the country.
The market pulled back after the US allowed a temporary window for countries to buy stranded Russian oil and after the IEA confirmed a coordinated 400 million barrel emergency stock release. These steps helped ease some immediate supply fears, although they could remain insufficient compared to the scale of the disruption.
Futures are trading lower as many across Wall Street breathed a semi-sigh of relief yesterday after oil futures, which shot up to $120 overnight, retreated below $100 on Monday. That was the biggest spike in oil pricing since 2020. With the retreat in the black gold, the major indices did a massive midday turnaround.
So, we have sanctions on some countries. We're going to take those sanctions off until this straightens out, Trump said at a news conference at his golf club in Miami, Florida. Then, who knows, maybe we won't have to put them on there'll be so much peace, he said.
We are not there yet. What we've agreed upon is to use any necessary tools, if needed, to stabilise the market, including the potential release of stockpiles.
Launched in August 2022, DRLL was built on a specific premise: ESG-influenced asset managers were pressuring energy companies to underinvest in oil and gas. Strive's answer was an ETF designed to push holdings toward maximum production and shareholder returns, not carbon reduction targets. With 98.6% of the portfolio in energy and nearly half the fund split between Exxon Mobil and Chevron, the exposure is about as concentrated as it gets in public markets.
Forecasts that oil will hit $100 barrel happen regularly now because of the war in the Middle East and the shuttering of the Strait of Hormuz through which 20% of the world's oil flows by ship. If 2022, after the start of the Ukraine war, is any indication, $100 brings $5 gas.
Wizz Air warned investors last night that it believes the current crisis in the Middle East will wipe 50m off its profits this financial years. Wizz had previously predicted that earnings would fall within a profit of 25m to a loss of 25m, so today's warning means it expects a loss for the year.
The increased trajectory for Canadian oilsands production growth amidst a period of oil price volatility reflects producers' continued emphasis on optimization and the favourable economics that underpin such operations.
