Mid term election is around the corner. White House is doing all it takes to lower down the gas price. Apart from consdering further Strategic Petroleum Reserve release, unprecedented move is taken to set future SPR repurchase price of USD 67 - 72. This shall set as a reference floor price (at least for me personally) when comes to trading oil futures$Micro WTI Crude Oil - main 2211(MCLmain)$. An analyst even says that Mr Joe Biden is a great oil trader (sell at 3 digits, buyback at 2 digits). You can check out the links below for further details.
Obviously this is a counter move against the OPEC+ previously announced 2mil /day production cut. All eyes will be on OPEC+ if the cartel were to react on this. Given the higher implied volatility, I will sell oil majors $SHELL PLC SPON ADS EACH REPR 2 ORD SHS(SHEL)$,$Total SA(TTE)$put options to collect premium. My simple view is that floor price of oil is set, and it can go only sideway or higher. Afterall, let the time decay play to the favour of contract writer until Dec (price cap of Russian Oil).
https://youtu.be/lIHoMiYC1nA
https://www.whitehouse.gov/briefing-room/statements-releases/2022/10/18/fact-sheet-president-biden-to-announce-new-actions-to-strengthen-u-s-energy-security-encourage-production-and-bring-down-costs/
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