Natural Gas Situation
The folks at oilprice.com report to their readers that natural gas prices have hit 2008 levels (see: U.S. Natural Gas Prices Hit $9 For The First Time Since 2008). Natural gas forward contract first hit the $9 price range way back in 2000, at near peak GDP from the so-called Dot Com bubble , or Greenspan's 1994 to 1999 Great Inflation.
One should be little surprised that natural gas prices have reached 2008 levels, right when the US economy had past a True Dollar GDP peak. For fourteen years, prices have been incredibly low owing to the Super Depression.
UNG ETF
Oil Situation
Next up, the rather abusive EU and USA political classes are begging oil nations to cut their income, so says Hellenic Shipping (EU, United States pushing for global fuel production increase – Scholz). Yet, why should oil producing countries meet such demands?
There is much oil in the USA as there is natural gas. The political class in the USA has hooped themselves with a phony man-made global warming story.
So if they greenlight production and refining in the USA, both of which no smart oil firm exec will do unless there is a sustained return on capital for years, years of their global warming story falls apart.
Yet, since USA political class has made out oil firms to be the bogeymen, the scourge of mankind, smart execs likely will ignore pleas from the USA political class.
USO ETF
The USO ETF is up 65% over the last six months and 50% year-to-date. As long as world demand grows and as long as supply relationships remain turbulent, likely, oil has further to run.
Gab It
