Oil Continues to Power Higher. Is the S&P Selloff Over?

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I think there is some scary stuff going on and one is crude oil. If the US was to go to war, it would require the use of the US oil reserves. If you recall, crude oil was trading around the $67 level when Trump took office in February of 2017, but after an increase in production during the beginning of the COVID it dropped down to $24.21 a barrel. By April of 2022, crude oil traded up to $110.45 after the Biden administration took office as the Democrats pushed their go-green policy and cut fossil fuel production, pushing prices up dramatically.

Look, the part that bothers me is that the go-green policies totally overlook the geopolitical landscape. First, China is the largest polluter in the world and while they say they are moving away from fossil fuel, I say it's all BS. They have been buying commodities and oil at any price since Trump took office. A lot has changed since then, the first being the Russian invasion of Ukraine. The other is all the new alliances that the US are not part of, which include the largest oil producers in the world.

I think the two charts by Crescat Capital speak louder than words, US oil reserves are at a historic low and demand is at the highest level in years.

I think there are a lot of other things to be concerned about: higher interest rates, Moody's bank downgrades, the billions in defaults from commercial real estate, inflation, and the possibility of WWIII. I always said Pitin would not get stepped on forever and with the Black Sea closed and the Saudies cutting production and the US ramping up its military presence in the Persian Gulf and taking on China, should war break out crude oil could easily go to $150 or even $200.