GoldNuggets Digest: gold price new highs, the gold bull market in perspective, commodity price ratios, energy stocks vs gold miners, energy sector harbinger...
What do you think about the US seizing Venezuelan oil? I heard that it's "dirty" and needs a lot of refinement but it would require oil and gas companies to invest billions just to extract/process it. I'm also curious if this will eventually affect the global supply 🤔 it should! With time…just depends on developments I guess
Yes, it will increase supply, but they need to stabilize the government, form a more certain investment environment, and then undertake the actual capital works to get production scaled up. I've seen estimates it could take 2-3yrs...
Thank you for the response! The energy market will have its eyes on Venezuela if there's positive developments. Investing in energy seems great since it's a commodity relative to inflationary monetary policy. Considering the pace of inflation, Venezuelan oil production won't curb energy prices anytime soon. Still a great sector to allocate at a later time though. Major resource shortages will become a geopolitical trend I suppose.
Geopolitics will most likely drive oil & gas higher.
it's certainly up there on the list of catalysts, but depending on the nature of it, maybe not as sustainable as other drivers..
What do you think about the US seizing Venezuelan oil? I heard that it's "dirty" and needs a lot of refinement but it would require oil and gas companies to invest billions just to extract/process it. I'm also curious if this will eventually affect the global supply 🤔 it should! With time…just depends on developments I guess
Yes, it will increase supply, but they need to stabilize the government, form a more certain investment environment, and then undertake the actual capital works to get production scaled up. I've seen estimates it could take 2-3yrs...
Thank you for the response! The energy market will have its eyes on Venezuela if there's positive developments. Investing in energy seems great since it's a commodity relative to inflationary monetary policy. Considering the pace of inflation, Venezuelan oil production won't curb energy prices anytime soon. Still a great sector to allocate at a later time though. Major resource shortages will become a geopolitical trend I suppose.