Last week President Biden announced a plan to buy 60mln barrels of crude oil as the first step in a years long process aimed at replenishing America’s shrinking emergency oil reserves. This immediately sent crude prices higher. This is meant to extend beyond the filling of the emergency reserve and encourage domestic oil production. On top of this the Russian/Ukraine crisis is boosting oil prices higher!
Will these factors combine to push oil prices rise to 125?
The seasonal pattern for US crude is strong at this time of year with seasonal demand notable. Over the last 10 years US crude has gained 7 times between May 09 and May 21 with an incredible annualised return of over 240%?
More oil gains to come?