Crude Oil on the Run Again. $100 in Sight!

R

RedSun

H22 is marching to $90 now. $100 is in sight, probably ahead of summer driving. That is May.

What will Bide and Fed do about this? Nothing really. Fed has to be determined to raise interest rate multiple times. But Fed can't put down the fire from energy market.

American drivers are in trouble.....
 
The Fed can bring down stocks, bonds, real estate, gold and crypto with rate hikes...but not oil. That's a policy issue. Open the pipeline and stop relying so much on imports (from places with worse environmental standards than the U.S.) if you want to bring down prices. Nothing the Fed can do about that, though...
 
Now Biden tries to drum up support from China, Saudi, UAE and other nations for the energy situation arising from the Ukraine situation. That is even worse. Where can China get oil and LNG if UAE LNG goes to Germany and Saudi oil goes to UK?

This is even worse than Biden trying to coordinate SPRs. China was not really on board. But China wants to manage on its own pace.

Not good for US mid-term election. With $100 oil price.
 
Oil is a necessity that every country in the world needs, US included. Joe Biden can suppress drilling and exploration, add numerous regulations on oil companies, stop pipeline construction, give huge incentives to more expensive green energy companies. It will not curb and drive down the price of oil. Actually, that will only serve to spike oil prices even higher. And if war breaks out in the Ukraine, expect Russia to join Saudi Arabia in curtailing oil production to keep oil prices sky high. They keep talking about more and more sanctions on Russia, they forget that Russia exports oil and supplies 35% of Europe's natural gas needs. Russia knows if they keep oil prices sky high, it hurts the US economy and war mongers promoting war.
 
BUT, US military like wars. US arm manufacturers like wars. US energy company CEOs all like wars. All can benefit from military spending. And US politicians like hard stance too. So they can counter both Russia and China.

Only lowly American people do not like wars. We need to pay bills, food and shelter.....

Those politicians are hard to find in US....
 
RedSun said:
BUT, US military like wars. US arm manufacturers like wars. US energy company CEOs all like wars. All can benefit from military spending. And US politicians like hard stance too. So they can counter both Russia and China.

Only lowly American people do not like wars. We need to pay bills, food and shelter.....

Those politicians are hard to find in US....
More...

For sure arms manufacturers stand to benefit and they do not care that US troops killed needlessly or maimed for life. It is all to benefit politicians to line their pockets. This was never about countering Russia because the US has allowed Chinese spies to steal US military secrets and industrial secrets from US companies. We also, have strengthened Russia by using NATO as a tool to try and neutralize Putin by playing in his backyard. If there is war in Ukraine, it is going to be ugly and it will be NATO getting trashed badly. I think Russia will pull all stops and pound Ukraine into submission. Anyone who stands in the way, will be cannon fodder. Macron and Johnson, soy boys that they are will run with their tails between their legs. Germany had the right idea to stay out of the fray.
 
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