Hunting for 2023 Energy Lows

[errolanderson]

Commodity deflation appears gaining a head-of-steam led by fallout in energy markets globally. Plunging base commodities like iron, lumber and Baltic freight rates have been early warning canaries-in-the-coal-mine detected months ago. Global urea prices now in-decline.

Natural gas prices have been in a shocking collapse. Crude oil remains in a stiff downtrend. Ethanol and bio-diesel prices definitely wounded. Corn is now grinding lower day-by-day. Canola on-the-lookout.

Without geo-political disruptions, energies may continue to weaken through 2023 (IMO). WCS Select (Alberta) oil prices now $50 to 55 per barrel may ease toward $40 per barrel later ‘23 should Brent and WTI oil continue their descent. Global economies are weakening, demand failing. Oil supply manipulation no longer works-it’s-magic.

Realize my opinion doesn’t rhyme with mainstream internet . . . .

[jazz]

Errol, oil has a much better chance of going to $125 than to $40.

SPR is empty and the esg clowns are still around.

[shtferbrains]

It won't happen again but it sure is looking golden?

[Landdownunder]

demand destruction and deflation similar but different reasoning seems we have both.

particularly oil.

i to read zero hedge been about 30% correct in the covid induced economy.

but always a good read

[Taiga]

I can’t believe demand destruction hasn’t hit equipment yet. I guess you either pay to play or you don’t. Best opportunity ever is being presented for farm liquidation auctions if you are in that age group.

[errolanderson]

I can’t believe demand destruction hasn’t hit equipment yet. I guess you either pay to play or you don’t. Best opportunity ever is being presented for farm liquidation auctions if you are in that age group.

Cash is king . . . There may be mind-blowing deals for those that can pay cash by spring. Used vehicle prices broke in September. New vehicle prices now under pressure. Play toys may see heaviest discounts.

[foragefarmer]

Errol, oil has a much better chance of going to $125 than to $40.

SPR is empty and the esg clowns are still around.

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The lifting of Covid restrictions in China will definitely increase demand for oil in China. Travel alone within China itself by it's citizens will certainly have an effect on oil prices.

Industrial demand will also be higher as well, once production is stepped up.

There will also be more demand for goods of all kinds by the Chinese population which will raise hell with supply chain issues and in turn could have an effect on world inflation.

If this happens interest levels could creep higher or stay at the current levels they are at for some time in the future.

But even so Jazz, the $125.00/barrel is a hell of a dial down from the $200-300/ barrel "Super Cycle" predication you made not that long ago.

I got to give you credit Jazz, you certainly like pumping up that long oil position you've taken here on Agriville.

[errolanderson]

The lifting of Covid restrictions in China will definitely increase demand for oil in China. Travel alone within China itself by it's citizens will certainly have an effect on oil prices.

Industrial demand will also be higher as well, once production is stepped up.

There will also be more demand for goods of all kinds by the Chinese population which will raise hell with supply chain issues and in turn could have an effect on world inflation.

If this happens interest levels could creep higher or stay at the current levels they are at for some time in the future.

But even so Jazz, the $125.00/barrel is a hell of a dial down from the $200-300/ barrel "Super Cycle" predication you made not that long ago.

I got to give you credit Jazz, you certainly like pumping up that long oil position you've taken here on Agriville.

Central bankers are on a different planet right now. They created this mess pumping artificial support since 2017. Now trying to unwind their mess by hiking rates at the worst possible time. They are going for the economic kill shot.

Cash has been king for some time now for most. Grain ag has had a great year. But overall asset inflation for general public peaked spring 2022. Spring 2023? Energies, real estate are not going to do very well. China is not going to save us . . . .

[TASFarms]

The lifting of Covid restrictions in China will definitely increase demand for oil in China. Travel alone within China itself by it's citizens will certainly have an effect on oil prices.

Industrial demand will also be higher as well, once production is stepped up.

There will also be more demand for goods of all kinds by the Chinese population which will raise hell with supply chain issues and in turn could have an effect on world inflation.

If this happens interest levels could creep higher or stay at the current levels they are at for some time in the future.

But even so Jazz, the $125.00/barrel is a hell of a dial down from the $200-300/ barrel "Super Cycle" predication you made not that long ago.

I got to give you credit Jazz, you certainly like pumping up that long oil position you've taken here on Agriville.

I think China will be stale for many more months. I’ve seen predictions that by the end of February most of the Chinese will have had the new strain of Covid.

[jazz]

But even so Jazz, the $125.00/barrel is a hell of a dial down from the $200-300/ barrel "Super Cycle" predication you made not that long ago.

Who is dialing down. $125 is just the next leg up on the way to those numbers.

Unless the climate hysteria is scrapped immediately this is where we are going.

[errolanderson]

Texas spot natural gas prices have apparently turned negative recently. They will pay you to take it away.