Oil holds above $110 as reserves in the U.S. begin to decline despite a stagflation recession looming. 3 day forecast/trade to $112. A prelude to winter energy crisis about to hit Europe, as Putin, by default, sanctions the whole of Western Europe as economic warfare. Germany begins firing up coal power stantions. It's Climate Change and an Economic ice age on the horizon.

Chart 1

Chart 2

Putin's $100 'put' is holding within a wide trading of $109, with the very real possibility that globally we will fall into a deep stagflation recession, when June 8th the crude price topped $122 and collapsed to $108 17th June.  The price of oil rallied back towards it's $110 support, which if a global recession is called, may stay sticky in the ranges between $110 and $113.  Pleaser refer to the Chart 1 above; three day forecast/trade to $112.

Stagflation and energy inflation are a beast, as rising costs of buying equipment and/or borrowing in a high interest rate environment, will crimp new drilling projects throughout the world.   Also to note that the supply chain crunches from 2020 onward have delayed orders for pent up demand, thus there is a worker shortfall in industries such as oil exploration.  The U.S. being the largest consumer of oil, to offset the oil price, the Biden administration has released, since April 2022, one million barrels of oil per day until the end of the year.   As noted with this chart from Bloomberg (Chart 2) at its current rate forecasted to October 2022, America's oil release will be run down the Strategic Petroleum Reserves to its 1987 lows.

Are we entering an energy ice age?    All the while Europe in a prelude to their 2022 winter looming will begin reactive their coal fire Power Stations.   Starting with Germany.