INFLATION--FED's cutting rates again...

Today I hear you but for how long? Reminds me, wonder when Biden will reload the reserve? He’ll probably wait till prices go back up.
He claimed SPR would be stocked when oil was under $70. It was there this week. Yet, all we have is radio silence...
 
He claimed SPR would be stocked when oil was under $70. It was there this week. Yet, all we have is radio silence...
WTI and Brent in December.

upload_2023-12-15_9-57-6.png


The real issue is the lower pricing is due to Venezuela pumping all of their crappy oil offsetting OPIC+, but still attempting to be a part of OPIC+.
 
No one knows for sure what will be the situation by mid-March. Could be a recession by then.

A recession is the economy rejecting malinvestments and resetting economic activity to real value producing investment. Without that the economy will continue to consume capital. We need to get back to a capital accumulation situation with lower prices for working and middle class families.

Better yet. Go back to a gold (or silver) standard which is the only constitutional money and get the Fed out of the interest rate business. Let markets determine the price of money.
 
WTI and Brent in December.

upload_2023-12-15_9-57-6.png


The real issue is the lower pricing is due to Venezuela pumping all of their crappy oil offsetting OPIC+, but still attempting to be a part of OPIC+.
For you refining types: will this put a bunch of idle Gulf Coast refining capacity back on line (idle because it was geared to refine the crappy tar oil like Venezuela produces...)? An uptick, or even a little boom in refining?
 
For you refining types: will this put a bunch of idle Gulf Coast refining capacity back on line (idle because it was geared to refine the crappy tar oil like Venezuela produces...)? An uptick, or even a little boom in refining?
Lower cost Venezuela oil should help refining margins.
 
It is a different crack which is less efficient which equates to more costly.
However it is easier to reach the octane requirements vs lighter crude, which saves money because currently they are importing oil from Saudi to help make up the difference.
 
However it is easier to reach the octane requirements vs lighter crude, which saves money because currently they are importing oil from Saudi to help make up the difference.
The financial difference is transportation costs to the Texas Gulf Coast. The light crudes are easier on the process.

This is a very old argument that will go on until the wells run dry and hydrogen is the fuel of choice.
 
And speaking of Venezuela and heavy tar oil, Venezuela is thumping its chest about invading neighboring Guyana to "reclaim" lost territory. Guyana is now a major oil producer with some big new E&P projects in recent years.
 
Actually Chevron.
Exxon and Hess are developing the huge fields offshore of Guyana coast that could be impacted if Venezuela grabbed the adjoining land. The offshore field straddles both the disputed and undisputed offshore economic development area.
 
Exxon and Hess are developing the huge fields offshore of Guyana coast that could be impacted if Venezuela grabbed the adjoining land. The offshore field straddles both the disputed and undisputed offshore economic development area.
Ok. I was just thinking Venezula.
 
The terrifyingly powerful Houti ragtag gang has shut down the Suez canal. That lengthens northwest Europes supply of MidEast oil from 10 days to 37, around Good Hope. In the matter of three weeks, that erodes 20% of NWE oil inventory. Commencing on the first day of winter. That on top of no Russian oil or nat gas is a disaster on the front porch. Over time, the lengthened supply line erodes inventory by 5-7% per week. By February, price will be no object. No one in the F-Troop administration talks about this. Sadly, because they dont know. There are not enough ships to fill this gap long term. Perhaps sailing ships will help.
 
Between that and Jill standing in front of Hunter High sign I'd say the WH staff has reached new levels of incompetence




Or great competence.
 
Cheniere has got to be liking this.

Buy gas at low prices on the Gulf Coast. Liquify it and sell in Europe for soon-to-be windfall profits.
 

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