I am often asked if I am worried about the oil price dropping because we are heading for a significant recession. My position has been that as long as oil inventories continue to fall I am staying long and trying my best to ignore the daily and weekly fluctuations in the oil price.
Eventually, the releases from the SPR will end. What happens then? I suspect we will see all-time oil highs in the oil price. Where is that you ask? Inflation-adjusted it would be slightly above $200/bbl.