Hurricane Ian is rocking up the west coast of Florida and it's taking out some drilling and refining operations that have shut down before the storm hits as a precaution. This resulted in a 2.5% increase in the spot price of WTI today. I think there's more to come and possibly more upside assuming that reduced production = reduced supply = increased $/bbl.
There are some factors in play that might make this a bad idea. Oil is already high and has been heading down for weeks now. This is the result of demand destruction as the entire US cools off headed into fall there's less demand for electricity due to reduced use of air conditioning. Demand will increase again as cooling continues into winter but long range weather forecasts are predicting a warm winter due to La Nina.
Submitted September 28, 2022 at 01:53AM by SkyHigh27 https://ift.tt/tfB2lLr
