Hey there! If things stay as they are, I'm currently planning to go to two conventions later this year. If you're going to Colossal Con East or Holiday Matsuri - and want some photos - I'm offering my photography services!
Please DM if interested! Thank you 😊
@SoumenSanyal14@calvinfroedge Oil contracts are physically settled (ie an oil contract owner is expecting delivery of oil), so failing to find sellers, they will scoop up contracts, spiking the price and squeezing shorts. (This is essentially the inverse of what happened when prices went negative in 2020.)
@SoumenSanyal14@calvinfroedge Irrelevant and wrong. The following is what is going to happen whether you like it or not - because physical oil is very markedly not like precious metals.
Physical oil will become scarce (Cushing), this will force the physical market higher as buyers seek new sellers-
@FriedFinance_@FinanceLancelot Reality doesn't care about economic turmoil. Commodities are not the stock market - they cannot stay irrational.
If an economy demands 100 barrels of oil at current price and we're only producing 90, the price HAS to rally to reduce demand by 10 barrels. We know this will happen
@SoumenSanyal14@calvinfroedge This is for stocks, the market can literally be irrational forever in the stock market. A physical commodity like oil is not the same.
If you are producing 100 barrels of oil and the demand for oil at current price is for 110 barrels, you will run out if prices don't move
🚨 Oil Short ETFs see biggest outflow on record as experts warn countries around the world are set to reach “operational stress level” in the 2nd to 3rd week of June as reserves drop below critical levels.
$cvx $xom $oxy
@RodriGo_ethe So stock markets can remain "illogical" basically forever, AI bears could be wrong. Commodities cannot. If you sell oil at a price that more people will buy it at, then the amount being produced, you will get shortages forcing a price spike. We know inventories are drawing down.
@BrettErickson28@BYeomsehye27801 No there is no indefinite manipulation. Oil prices remaining at this price with the Hormuz closed will, within weeks from what I'm hearing, result in shortages. Economics requires the price to rise or the shortages to hit, there is no permanent world where this price holds.
@BrettErickson28@WhiteBoySabbath The jawboning has saved oil in the short term but is catastrophic for the upcoming crunch. Oil should be, at least, at $120 right now, not $95. At this price it is not destroying demand as much as it should and we are, as a result, burning through the supplies we do have quickly.