International oil spot prices break through $100 per barrel: which industries are good for high oil prices?

Oil wells on fire! The world's most important oil price indicator, the spot price of Brent crude oil (Dated Brent), exceeded $100/barrel last Wednesday (February 16, 2022)!

Although the price experienced a correction for the rest of last week, the indicator is again standing above the $100/b mark after 10 years, which means that the high price of oil may be the tone
for some time in 2022.

Some time ago, in writing an article on this year's fuel oil price for a gas station, Benmei has always stressed that this year's international oil price should be around
$96 per barrel.
However, due to the tension between Russia and Ukraine and the rebound in fuel demand brought about by the lifting of lockdowns in other countries, it is not surprising that the price of international oil futures
has rushed to the $100 barrel mark.

In addition, according to ICE, the Intercontinental Exchange in London, the six-month spread of Brent crude futures hit as much as $8.
74 per barrel on Wednesday, the largest spread
since 2007.
The large spreads also indicate that the current tight situation in the market is quite rare
.

Normally, the physical transaction of crude oil is mainly completed through the spot market (Spot Market) and long-term contracts, and most of the physical transactions of crude oil and refined oil products are traded by long-term contracts
。 THEN, DATED BRENT AS A LOADED OIL QUOTATION, OIL DRILLERS AND TRADERS, OIL USERS AROUND THE WORLD ARE AT THIS PRICE PLUS A CERTAIN PREMIUM DISCOUNT, WHICH MEANS THAT THE CURRENT MARKET SENTIMENT IS MORE INCLINED TO ACCEPT THE PRICE OF $100 A BARREL - MANY PRODUCERS ARE NO LONGER WILLING TO HEDGE, BUT TO ROUND UP 100 TO Traders and Oil Users, The key is that these downstream merchants also accept such a spread
.
After all, as early as 2008, international oil prices climbed to a high price
of $147 a barrel.

In fact, back on February 15, John Driscoll, director of energy services company JTD Energy Services, said in an interview with CNBC:

"There is a shortage of supply of crude oil due to the lack of capital investment in crude oil exploration.
.
.
The price is expected to break above $120 per barrel, or even $
150.
”

Damien Courvalin, head of energy research at Goldman Sachs, told Bloomberg that he expects gasoline, diesel and plastic consumption to hit a record high this year and next, and although "carbon reduction" has become the development policy of major economies, it is a gradual process that is difficult to achieve
overnight.

Such a release is undoubtedly bringing more "ammunition" to the hype and speculative bulls, and it is also telling global investors that high oil prices are a major theme
in the post-public health event era.
On February 18, the latest oil market report released by the International Energy Agency (IEA) also showed that global oil demand is expected to reach 100.
6 million barrels per day by 2022, an increase of 3.
2 million barrels per day year-on-year, and also exceeding the 100.
3 million barrels per day
in 2019.

At a time when the era of high oil prices (≥ $90/barrel) may last for a while, we should also take stock of which industries are beneficial to high oil prices:

In addition, high oil prices are generally bearish for the economy, and the upcoming wave of interest rate hikes will also lead to the upward momentum of oil prices being suppressed, especially the decoupling of trade in some countries, which will also lead to a decline
in oil prices.
Therefore, investors may need to take a long-term view in this regard, such as paying more attention to the dividends brought by technological development in alternative energy, rather than listening to rumors in a hurry and eventually suffering losses
.