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Crafty_Ranger_2917 t1_iug0iik wrote

Reply to comment by v10climbz in Diamondback Energy for the Win. (FANG) by v10climbz

I should have said price not demand. At any rate Texas sweets have been from $70 to $120 in the last six months. What am I missing here, that seems fairly volatile? Based on last couple years it looks like the current $80-ish isn't cheap either....under the theory that demand might shrink.

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v10climbz OP t1_iug4r33 wrote

You’re not wrong but if companies are locking in profits at 60 dollars a barrel and the lowest WTI has gone in the last sixth months is 78 with a high of 122ish. Supply is the key factor in oil price I.e Brent Crude or WTI. There’s a bunch of oils but these are the two benchmarks. With inflation and OPEC+ supply cuts oil prices should stay at a level where massive profits can be made. OPEC tried to destroy the American shale producers years ago. The flooded the market and many American oil companies went bankrupt. But, recently OPEC has decided if you cannot beat them join them. The oil cartels including OPEC, XOM and BP don’t wanna exacerbate their reserves they wanna influence demand to a point where everyone in the energy sector is happy. That’s my hypothesis.

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