when paul sankey sees energy one go from two to eight, what does that signal? ul: probably that we see the price in europe more like 50. extraordinary prices. the draw their, i think a cost you five to eight dollars across the atlantic -- five dollars eight dollars across the atlantic. there isn't and place it massive cool on our imports and that will be sufficiently large to pressure nash -- pressure natural gas prices in the winter. it becomes a question of where their we got hurricane season which has not happened at all and the really concerning question, the major concern, how cold it gets this winter and if we get a globally cold winter, we will have death i'm a fred -- i'm afraid. lisa: that's on the natural gas side. on the oil side, the iea saying increasing number of gas relying electricity providers are turning to oil prices, to oil, to state of the sword edges -- the shortages. how cheap is this market relative to where it will be at the end of the year? paul: it is way below. we are over $50 per hour btu in europe and quite possibly going higher bas

paul sankey seeing all this before. s a strange and twisted note, which is almost the zeitgeist of what he has seen in earnings. paul, i want to go to your wheelhouse, which is gaming the capital expenditure culture in the belief of big oil companies giving inflation. >> i think they know where the oil is in texas. what they top doing is spending the money on trying to find the next big thing. they have found one next big thing, but that is all that has been significantly discovered in the past decade. as you say, the expects and uncertainty of finding new oil is really constraining global capacity badly. opec is out of capacity. i don't see this as a slap in the face to the biden administration, i see it as more of a shrug or, we are powerless to move. it is saudi arabia that has spare capacity left. they don't have any spare capacity and they are worried about it. there is a real worry about it out there. if it weren't for the $1 million -- one million barrel per day, we would be higher. jonathon: walk me through the n

.>>> a shocking problem in supply right now, paul sankey, runs his firm. no flies on me.nd we had on the lot yesterday, the surprise notion that could be an open production cut after they barely gave the president anything with 100,000 per day. is what you are saying based on that at all or other things? >> they did say we are out of spec capacity, we have a supply problem, i think there was frustration from the saudi's, the oil price had not come back as much as you mentioned yet, they see strong demand in a problem with supply and trading guys a problem between physical and paper markets, so much liquidity is out of the paper market that the price does not really reflect the physical market behind it. >> a long discussion on that this morning, opec or the saudi's, complaining about that, isn't it a cartel, that's what they do for living don't they? >> yes sure, they're trying to organize the price but the are saying is a disconnect between the prices on the screen and what is out there in physical reality in terms of what they are seeing. >> given that we've seen progre

paul sankey will join us on oil soon.rning. ♪ millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network and most recommended wireless carrier. that's a whole lot of happy campers out there. and it's never too late to join them. get $450 off any new purchase of an eligible samsung device with xfinity mobile. or add a line to your plan today at xfinitymobile.com this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app. >> you continue to hear hawkish, from the fed because they need credibility to keep inflation expectations in check. >> we might be going in a better direction than people thought. >> we think where -- think we are in the clear.