Our last visit with Mr. Schork was January 27's "Schork on Gasoline Prices: ‘We’re looking at a potential 40-45 cent increase’" with RBOB at $2.5210. That was a pretty good call. And then Russia invaded Ukraine.
Again, that was a pretty good call and is one more example of how being on the right side of a trade can lead to unexpected goodies. But maybe not so unexpected for some. The upward trend was already in place before the invasion.
And now he's talking oil. From Yahoo Finance, August 16:
As demand for oil weakens, gas prices are declining, with the national average falling below $4 per gallon earlier this month for the first time since March.
But the pullback may be short-lived, one expert cautioned, and prices could rise again before the end of the year.
“We’re in a long-term structural bull market in oil,” Schork Group principal Stephen Schork told Yahoo Finance Live (video above). “By the end of the year, I would suspect that these prices will be back in that $100 to $125 range, which we’ve seen through the first half of this year.”
Schork explained the jump in prices in the final months of the year would be driven in part by the European Union’s looming embargo on Russian oil, which is set to take effect in December.
Russian oil production is expected to drop by about a fifth next year due to the EU’s ban, according to the International Energy Agency (IEA). The agency estimated that 1.3 million barrels per day of crude and 1 million barrels of Russian petroleum products will "have to find new homes."
Short-term relief....
....MUCH MORE
WTI futures: $88.13; Brent $93.57.
As noted in the outro from that January post:
During the huge run-up and collapse in 2008 Schork proved to be pretty insightful. However, we haven't had his name in pixels since 2016. Pay attention or pay the offer.
