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Oil accelerates higher as SPR spits out

White House oil strategy baffles

Here’s the thing: $ 80 of oil isn’t expensive.

By pushing the panic button so early in the cycle and fighting a losing battle, the White House is showing it has no idea about oil.

Performing this move is also a mess. By disclosing it for weeks, they left the market price in the worst case. Then we find out that it’s not really 50 mb. It is 32 mp that will have to be reimbursed and an acceleration of 18 mb which was already announced.
If you’re an oil bull, now it’s one more stock that’s on the sidelines. As a trader it was such an obvious “buy the fact” trade and that is exactly what is happening. Justin explained it immediately after the news:

Don’t be surprised to see oil start to regain some upward pull by the end of the day. I mean the main risk is out and what was a threat from last week is over, and with little reaction seen in oil prices.

Ultimately (or at the end of next year), it will simply give OPEC + countries more power over oil prices. And these countries have huge holes in their budgets that can only be filled by higher oil prices.

I have been slapping olive oil on the barrel for a year. WTI is now higher on that day, up $ 1 to $ 77.70.
Oil accelerates higher as SPR spits out

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