Its not my area of expertise by any means, but I would perhaps point out the US Strategic Petroleum Reserve chart[1] which is at its lowest level since 1982.
Also do not forget the oil and LNG needs to be transported and that is becoming increasingly difficult and expensive.
It may well be that the artificial party cannot go on forever.
The US Petroleum Reserve is governmental, not done by the oil industry. The US government buys and stores oil when prices are low to provide a buffer for volatility in the markets or for things like natural disasters. The reserve being low means that the oil companies are very close to having a market that has no alternative but to pay whatever price is asked for oil.
To your point about oil and LNG being expensive to transport - that just means oil corps can turn down production at the locations impacted, and jack up the prices for whatever is produced in the locations that aren't. Lower operating costs + higher revenues = profits.
It really is a perfect storm for massive returns for the major players. As a bonus, it's impacting the Saudi and Russian national players, which are their toughest competition since they don't need to file any quarterly reports. I agree that it can't go on forever, but the oil industry is rolling around in money like Scrooge McDuck in the meantime.
True if goods are non-essential, false otherwise. It price of water went up 1,000% in my city demand would still be fairly strong (though sure we’d ration as much as we can)
Its not my area of expertise by any means, but I would perhaps point out the US Strategic Petroleum Reserve chart[1] which is at its lowest level since 1982.
Also do not forget the oil and LNG needs to be transported and that is becoming increasingly difficult and expensive.
It may well be that the artificial party cannot go on forever.
[1] https://en.macromicro.me/charts/41674/us-strategic-petroleum...