Re: Predicted Oil Collapse Underway...
Posted: Sat 16 May 2020, 21:20:52
rockdoc123 wrote:anybodies guess is probably the answer as there are lots of moving parts to the equation.
I think the weekly EIA report should be a decent guide to how much is being produced. Demand will come back slowly I would expect but with things opening up and there still being most of the summer driving season ahead of us we might see gasoline supplies start to decrease at which point the refineries increase their throughput and the overall supply of oil starts to drop further.
I think the rate of demand increase is probably going to be the driver here which will be helped along by lower production.
thanks again for the reply, you are a real resource. I have heard more people will be driving this summer to avoid airlines so, hopefully, demand will perk up. The great thing about big oil price changes is that they usually create such a dramatic industry reaction that its not uncommon for prices to rebound to the other extreme from where they were as too much production goes offline.