From Yahoo: “…Commodities strategists at Wall Street’s top investment banks expect 2026 and 2027 to be tough years for the oil industry. And that’s after a nearly 20% decline in oil prices this year.
Under a base case set by JPMorgan’s commodities team led by Natasha Kaneva, Brent crude oil (BZ=F) — the international benchmark price — will fall to $58 per barrel in 2026, with West Texas Intermediate crude oil (CL=F), the US benchmark, trading $4 below this level. In 2027, the firm sees prices falling by another $1 per barrel.
“At the risk of flogging a very dead horse, our message to the market has remained consistent since June 2023,” JPMorgan strategists wrote. “While demand is robust, supply is simply too abundant.”
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Too often we feel like there is nothing we can do about the climate crisis. The problems are too complex, wealth and its power too huge: the weak, deceptively incapable politicians, the too-capable lobbyists–and our political will for change misdirected towards meaningless dead ends.
Well, step up and smell the flowers. Demand for oil has now been cut to the point that refinery “mishaps,” wars, cartel throttling of supply, and political maneuvering have been overcome by the political will of the people and our impact on markets.
We are starting to win the climate change fight by reducing our use of fossil fuels, worldwide. You can make a difference.
This Thanksgiving, there are many problems facing our nation. One of those problems, the apparent climate impasse to finding solutions, has developed significant cracks. Evidenced by the reduced use of oil and its subsequent impact on prices. This is worth celebrating.
Genuine cuts in oil use evokes real hope for our future. Install solar and batteries. Buy an EV (Electric Vehicle, or a PHEV), or even a hybrid. All of these systems reduce oil use. That is our win. The rest of the “solutions” are too-often nothing more then “the rhetoric of failure”.
Most surprising in all this, market mechanisms can still work. Who’da thunk?
And for investors, think short.