On the way to……

I was on route to some IP pondering when the Al Jazeera story ‘White House adviser Jake Sullivan meets Saudi crown prince for Jeddah talks’ crossed my path. Immediately the thought   “There are just so many ways you can beg for cheap oil” passed my mind. OK, that might have been out of line, but the premise still sets. The White House have send nearly every large caliber in the direction of Saudi Arabia without making it an overly clear ‘White House’ event. The story also gives us (yet again) ““We were going to, in fact, make them pay the price and make them, in fact, the pariah that they are,” Biden said during a 2019 Democratic debate.” These were hollow words given at the wrong time. And now almost 4 years later the setting is as dire as the US has ever had them, but OK. Try to make us all believe that this is about ““bilateral and regional matters”, the White House said, including initiatives “for a more peaceful, secure, prosperous and stable Middle East”” Sure, make it about the one thing that the Middle East does not need the US to initiate. It has initiated enough imbalance to last it an eternity. Even as Reuters gives us ‘Oil settles above April peak on tighter supply’ (at https://www.reuters.com/business/energy/oil-up-supply-tightness-view-offsets-concerns-rate-hikes-2023-07-27/). We need to consider the impact of “Still, oil dropped on Wednesday after data showed U.S. crude inventories fell less than expected and the U.S. Federal Reserve raised interest rates by a quarter of a percentage point, leaving the way open for another increase.” You see, this scorcher of a summer on the northern hemisphere is also impacting energy costs, AC and cooling units are working overtime, as such winter could be a killer. I am using could be, because there is no clear evidence that this summer will leave us with a mild winter, implying that the US and EU are facing 5%-15% more energy needs and with the price of oil that could be a massive impact. One source is giving us today “Standard Chartered analysts conclude that crude prices are finally starting to catch up with the reality of a tightly supplied oil market.” Really? I got there months ago, so how are these clowns actually making their money? A tightly supplied market is the premise of shortages close to everywhere, and if you think that the EU is a nice place now, consider 28 members fighting each other for the same oil allotment, should be fun. I will invest in popcorn, we would all want some so we can watch the nagging tea bitches fight this one. I saw some forecast charts, but I had issues with them (optionally) for the most I might not get all the elements in that forecast. That is simple as I am not in that business. Yet the larger part is how the prices (allegedly) dip a little in early 2024, as I see it as these settings continue, the world (EU and USA) will face oil prices of $90+ from December 2023 onwards. I have no idea how high they will get, but the larger setting no matter how managed it is, the shortage will continue and press pressures up to weird levels all over Europe. All that is before China achieves a larger stake in the oil supplies. The US is silently hoping that they get it all from Russia, but without the cap in place China sees a larger benefit vying for the same stack that the US and EU are vying for. Call me nuts, but I reckon that is one scenario that could go south for the EU sooner rather than later. We all see what is given to us as to the events happening, but there is something off in sending National Security Adviser Jake Sullivan a month after Anthony Blinken went there. Something does not add up and it might just be me, but there is more to this visit than the press tells us (which is what the US likely told the press), they need something and cheap oil is the first thing that comes to my mind.

And in the heat the US and EU faces? Well I reckon one barrel of oil per household to keep it cool should do it. Oh no, there are only 2 million barrels to go round (times 90 days = 180) , so what about the other 600 million people. How will they get cooling? And what about winter, which 600 million need to face it without heating? Yes, the equation is not correct, but the sentiment is. For the first time since 1973 will we face an oil shortage. I tried to warn you all but too many called me stupid and insane (the latter might be true). So I will see you buried, frozen to death soon enough. I wonder if anyone realises how dire it is about to become and don’t blame me. All these analysts should have been there long before I arrived at that station, so why weren’t they? They can ignore it for now, but in February when the death count starts, their BS reasoning will be met with the anger of people who lost someone in the big freeze of 2023/2024. What will they do then?

Enjoy the day and enjoy the AC at current prices, the weekend is about to start.