Oil market is 'selling a lie' to the public, oil execs warn

[Yo_Mama_Been_Loggin]

The global energy market might be operating under a dangerous illusion that could soon trigger a massive financial shock for American families. Top oil executives are sounding the alarm, claiming that current market prices are selling a lie to the public regarding the true stability of our fuel supply. While gas prices may seem manageable now, industry insiders warn that a severe crisis is brewing beneath the surface, hidden by misleading financial signals from Wall Street.

Kaes Van’t Hof, the CEO of Diamondback Energy, recently expressed his concerns during a high level energy summit at Columbia University. He argued that the back end of the pricing curve is fundamentally dishonest about future risks. Currently, there is a wide gap between the high price for oil delivered today and the much lower price for future contracts. This discrepancy suggests a level of market confidence that many seasoned oil producers simply do not share.

This optimistic view from investors assumes that major shipping routes like the Strait of Hormuz will remain open and unaffected by ongoing geopolitical conflicts. However, executives believe this outlook severely underplays the likelihood of massive disruptions to airlines, food systems, and everyday transportation. If these predictions are wrong, the resulting shortages could catch the entire country off guard. The disconnect between traders and producers is creating a false sense of security that may soon evaporate.

The Hidden Deterrent to American Drilling

The primary danger of these misleading price signals is that they actively discourage new investment in domestic drilling. When future prices appear low, companies are less likely to spend the billions of dollars required to ramp up production. Van’t Hof compared the current American response to putting a garden hose into an empty Olympic sized swimming pool. It is a drop in the bucket compared to the scale of the potential energy shortage we face.

https://www.msn.com/en-us/money/markets/oil-market-is-selling-a-lie-to-the-public-oil-execs-warn/ar-AA23JXFI

[Miguelito Loveless]

1. The "market"

is totally disconnected from reality. It is rife with insider trading and the big players are making a killing with the "good news/bad news" prices swings. The realists have pointed out that if the strait opened tomorrow, it would still take YEARS to get production back to where it was. In the meantime, we are burning through our stockpiles and the US is being lied to at the highest levels. It is easier and less stressful to believe the lies than the truth.

Humans are very bad at risk assessment and understanding complex systems, Americans doubly so.

[sakabatou]

2. Market? More like a racket