OIL is about to sky rocket. *Feedback would be much appreciated*
Ok, Currently oil is trading at 115$ dollars per barrel. We’ve been over these levels before and as it might seem crazy, 150-160$ per barrel seems quite reasonable.
We’re only up 25% from the original news of the war meaning its only been a 1 week and abt 3 days. But a new sanction is about to come. The U.S will soon sanction Russia’s oil exports to the U.S. Why is this such a big deal? Russia is 2nd biggest exporter globally with about 72.6 billion being about 11% globally. “Keep in mind this will only happen as war escalates.” More specifically for the US imports of petroleum including OIL is about 7% and is currently 3rd on the leaderboard after Canada and Mexico. A possibility is other countries might react but that’s not really important. We’ve already seen U.S Gas companies sell most if not all there holdings of anything Russia gas related. – https://fortune.com/2022/03/03/russia-oil-embargo-us-europe-consequences/
We’ve seen this before believe it or not. During 1990-1992 Iraq invaded Kuwait Oil prices skyrocketed from 15$ per gallon to 33$ per gallon making it 120% increase over the weeks of the original invasion. One last possible catalyst is once summer gets closer, it means travel season gas prices hold right now which would be huge airlines would fail and there stocks would plummet.
Once we hit these high levels I plan on shorting oil for a while until we hit back under the 100’s.
Submitted March 05, 2022 at 04:32PM by Milo14Company
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