Rising Rates Will Help Oil

Summary

• Algorithms set to trade on price-trends do not act uniformly. Some shorted oil briefly in response to the growth stock correction but this was a short-lived event.
• We may see a tighter relationship between $WTI and rising rates. Those who short $WTI to protect growth portfolios may jump on the rising $WTI trend as inflation becomes more an issue of concern.
• How the physical world works and how individuals find common cause is lost to them leaving them anxious, paranoid and wanting to both control and destroy that which makes them anxious.

IvelinRadkov/iStock via Getty Images

The daily rate chart shows that rate surge causes correction in issues with extreme pricing with WTI rising to mid-$70s. Algorithms set to trade on price-trends do not act uniformly. Some shorted oil briefly in response to the growth stock correction but this was a short-lived event.

You can see a little blip higher in the US$. This is due to weakness in the Euro not EmgMkts. Investors are again pouring capital into US. Likely due to concerns of an energy crisis there because they went all in for wind turbines which now prove unreliable energy producers with no wind. This shows an ‘Alice in Wonderland’ political mentality globally. It is the belief one can legislate technological innovation by narrowing society’s means of economic growth. Then, out of the blue, the weather did not comply. Who would have guessed humans did not control the weather?

We may see a tighter relationship between $WTI and rising rates. Those who short $WTI to protect growth portfolios may jump on the rising $WTI trend as inflation becomes more an issue of concern. At the moment, backwardation shows expectations of lower $WTI in out-years. Look for a shift to contango to reflect this shift in market psychology. Those who believed they could legislate their imagined world into existence are coming up against reality.

Those who desire control of others are fearful of everything they cannot control. It is a personality that does not connect with the reality of the world to a degree the rest of us do this. How the physical world works and how individuals find common cause is lost to them leaving them anxious, paranoid and wanting to both control and destroy that which makes them anxious. These personalities have grabbed control of governing institutions. These are the people who form unions to control uncertainty they experience. They want a life without risk or strife and they want it to stop evolving in directions they cannot control. These are individuals who fear the future and fear those who do not show that fear.

They, at the moment, demand everyone ‘get the jab’. But if they get their way, they will turn around and institute another restrictive control mechanism. In the current $3.5-$5Tril spending, pkg is a provision to fine companies $700,000 per employee not vaccinated. Incredible!!

This is only a note to you with a few thoughts. I will not send this out as too many still do not recognize the issues these personalities pose and would think I am crazy. Some in the public are beginning to develop this level of thinking, but we still have a long way to develop the level of general understanding necessary to deal with it on a sustained basis.

Original Post

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

Comments

[paradox1]

Nature favors diversity and abhors uniformity, I.e. there’s a reason the universe has more elements than just hydrogen and our planet has more species than just one. The lesson is that we should use all forms of available energy, including coal and nuclear, in proportion to our ability to do so safely and economically.

[j. hughes]

You don't want to be called crazy so I will call you delusional. "Res ipsa loquitur"

[cenc]

o.k., since this mostly a rant article, I will bite.

As Greta has recently observed about World leader's actions on climate change so far, it is nothing but, "bla, bla, bla".

and so far, she is more right about the hydrocarbon market than any oil analysis, CEO, or all the politicians in the World put together.

net zero, eletric scooters, egg beaters, solar tanning beds, etc, are all just political red herrings to greenwash doing nothing.

Oil and gas will be around for a very long time to come. Even if they did what they said they were going to do, it would mean nothing. holding global temps to 1.5 degrees, by 2030, 2050, 2100, based on a fuzzy magic 2009 number, would mean exactly ZERO impact. That ship sailed back around the end of WWII, when most of the world still had not industrialized.

This is adapt or die time, and we will need every last molecule of hydrocarbons to adapt as there simple is no other energy source up to the task.

The alternative, mother nature takes over. She knows how to reduce carbon fast. She reduces carbon based life forms first, that generate all the other carbon.

LONG fang, cop, oih, mur, mor, este.

[shaner1]

Great Stuff Todd!
A great quote I found.

“Hydropower depends entirely on nature. Solar and wind depend entirely on nature. Those who believe that the impact of climate change is imminent and we will have more natural disasters than ever, why do they want to be more & more dependent on nature?”