$Crude Oil Futures(APR5) (CLmain.US)$ Shorters of oil will b...

Shorters of oil will be shock in 2025.

Trump claimed that the oil price would be below $60, and Goldman Sachs was bearish on the oil price below $60. According to the reasoning, the US government should replenish the strategic oil reserve by 70 million barrels below $60.

But today, the US government purchased 2.4 million barrels of oil for the strategic oil reserve at the so-called high price of $70, which will be shipped to Texas from April to May 2025!
This logic does not make sense.

American shale oil producers have wasted good resources. The current price only has very low profits, but a large amount of crude oil production has been consumed in vain.
Sooner or later, these people will wake up. There are already some clues, such as:
FANG said in its earnings call that they do not think that US producers should continue to produce oil here. They produce valuable assets but get meager returns, which puts them in a dilemma.

EOG expects that the growth of US oil supply will slow down in the next year, and the slowdown is based on the decline in the number of drilling and DUCs.

Chevron and ExxonMobil have a lot of resources in the Permian, but they have not increased production on a large scale.

So the key is the oil price. The current US oil price of around $70 is not enough to increase shale oil production. If the oil price goes lower, it will only reduce production. After all, it is very convenient to shut down and restart shale oil wells.
If you make $10 from a barrel of crude oil, what is the return after deducting taxes and loan interest? Moreover, this is a non-renewable resource. Do these energy giants spend tens of billions of dollars in cash on mergers and acquisitions for this mere 15% return on a barrel of oil?