McNally: Oil Prices May Shoot to $100 in 1Q 2023

The video discusses the implications of the price cap on Russian oil, aiming to keep Russian barrels flowing while maintaining a cap above the traded price. It explores market reactions, predicting oil prices to rise above $100, contingent on visible Russian disruptions. The diesel market faces challenges, especially in Europe, due to reliance on Russian supply and potential winter impacts. OPEC Plus dynamics are stable, with Saudi Arabia and UAE not concerned about Russia's compliance, but US relations remain tense.

What is the primary goal of the U.S. regarding the Russian oil price cap?

• To stop Russian oil exports completely

• To keep Russian oil flowing with a price cap above the traded price

• To increase the price of Russian oil

• To impose strict sanctions on all Russian exports

What factors are expected to drive a potential year-end rally in oil prices?

• A decrease in global oil demand

• OPEC+ increasing production

• Russian supply disruptions and China's reopening

• Increased U.S. oil production

What is a significant challenge for Russia regarding diesel exports?

• Overproduction of diesel

• Insufficient shipping capacity

• High domestic consumption

• Lack of demand for diesel

What is the expected impact of February sanctions on the diesel market?

• Increase in diesel supply

• No impact on prices

• Potential for diesel prices to explode higher

• Decrease in diesel prices

Why is Europe particularly at risk during the winter regarding diesel supply?

• Europe has no alternative suppliers

• Europe produces all its diesel locally

• Europe relies heavily on Russian diesel imports

• Europe has abundant diesel reserves

What is the current state of relations among OPEC+ members?

• Tense and unstable

• In conflict with each other

• Calm and smooth

• Completely dissolved

How has the pressure on the Biden administration changed with recent gasoline price trends?

• Pressure has increased due to rising prices

• Pressure has decreased as prices have fallen

• Pressure remains unchanged

• Pressure has increased due to new sanctions