There are some things that don’t add up in the world, like the knee-jerk reaction to Omicron, how your wife and kids figured out inflation and asked for more money, and the non-decision of OPEC + will negatively impact the United States gasoline prices.
Bloomberg published an excellent article covering the OPEC + meeting delays and their decision to stay the course for now by not making a decision. This is a very tactical decision and considers the lack of Omicron’s impact on demand. While everyone was talking about last month’s release of the Strategic Reserves for multiple countries for 70 million barrels, the effect on the oil market would be negligible.
The King Operating Research team called the impact on global prices and has gathered additional data points for several reports we are releasing in the next few weeks. We are calling for $125 to $150 oil next year based upon many matrices. We are also looking at an increase in the average price at the gasoline pump for consumers.
We are currently at a nine-year high for the time of year, and it will be getting higher in Q3 and Q4 of 2022. Still too early to call a price, but it will approach the regular unleaded national average record high of $4.11 on 7-17-08. This will be explained in future articles as we talk about the overall 2022 energy markets.
The energy crisis is just starting, and the United States shale oil and gas companies will be needed more now and in the future than ever before. While it does not seem like the boom times are here, they are on the horizon. But, please note that the boom times will arrive differently than they have in the past. More like an athlete running a marathon rather than a sprint.
Buckle up; we are heading into interesting times in the energy, oil, and gas markets.