TD Ameritrade Interview with Jay R. Young. The quick upside to oil – an invasion
February 14, 2022
A great interview on TD Ameritrade:
Inventories are down 42% since the beginning of 2022, says Jay R. Young, Founder and CEO of King Operating Corporation. He discusses the 2022 outlook for energies. He also talks about the upside of oil and gas, highlighting light sweet crude oil futures (/CL). He then goes over what a Russia-Ukraine war would mean for the energy market.
Pain at the gasoline pump will remain high, how high is up in the air.
Refineries are costs have increased with higher oil and power prices. -AAA this week says normal supply puts lower price pressure, but high oil and refinery costs keep prices up.
If a conflict in Europe breaks out, we could see possible dramatic increases, and $5 to $7 in parts of the country is not unreasonable.
Potential Trucker and Gasoline Tanker impact has yet to be determined and calculated
High US Oil Prices
The crude oil inventories have been down 42% since the beginning of the year.
Drilling is increasing but will take years to outpace demand
Demand is remaining high as Covid and mandates calm
Supports $100 oil for the near term
Conflict in Europe supports $120 to $135
Natural Gas Prices
Natural Gas prices demand and will support normal downward seasonal pricing.
Supply is adequate to get through winter.
LNG being sold to Europe does not impact prices.
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Jay R. Young, CEO, King Operating
And visit the King Operating Website for more market information and insights.