Gorry: Oil Prices Could Easily Go To $130

The video discusses the current state of the oil market, focusing on OPEC's decision to maintain its supply plan despite rising prices and geopolitical tensions, particularly the Ukraine situation. It explores the speculation around oil prices, with potential spikes to $130 or even $200 due to backwardation and market dynamics. The impact of Russian oil, which is not currently sanctioned but faces self-sanctioning, is also examined. The discussion highlights the challenges faced by big oil companies in ramping up production, especially in light of reduced resource bases in Russia and the potential for increased US shale oil production.

What is the main reason for the disconnect between actual oil supply and market perception?

• OPEC's decision to increase production

• Rising oil prices

• Market speculation

• Lack of physical oil supplies

What is the potential short-term price target for oil mentioned in the discussion?

• $100

• $130

• $150

• $200

What is backwardation in the context of the oil market?

• A situation where demand exceeds supply

• A situation where future prices are lower than current prices

• A situation where supply exceeds demand

• A situation where future prices are higher than current prices

Why are some market participants hesitant to buy Russian crude oil?

• Due to potential future sanctions

• Due to high prices

• Due to lack of demand

• Due to low quality

What is the main reason for the tightness in the oil market?

• High production levels

• Low demand

• Speculation and backwardation

• Increased inventories

Why is Russian oil considered too important to sanction?

• It is too expensive

• It is crucial for the global economy

• It is not in demand

• It is not significant to the global economy

What is the expected contribution of US shale oil to the market this year?

• 800,000 barrels

• 600,000 barrels

• 400,000 barrels

• 200,000 barrels