I need to start a new series, most ridiculous "things" coming out of Washington, DC. I guess the reason I don't want to start such a series, it would be never-ending. LOL.
However, having said that, the suggestion that Washington, DC, would release oil from the SPR to bring down the price of gasoline would made that list. First of all, that would be illegal. The "law" actually specifically says the SPR cannot be used as a tool to manipulate the price of oil / gasoline. But, if the administration "broke the law" on this one, who would sue? LOL.
But the bigger problem is that US refiners are already well-supplied. The refiners might benefit but everyone knows the price of gasoline would not drop much, with everything else staying equal.
Inflation: being interviewed now, another talking head says the same thing -- some inflation is good. Period. Dot. Nelson Peltz, chairman of the board, Wendy's. Wendy's is now #2 in that group, finally displacing Burger King. Peltz is not worried about inflation; not worried about labor shortage. As an individual, he worries about inflation, departing Afghanistan too early, about a million things. But as an investor, he's not all that concerned about headlines.
Vaccines: this will be fun to watch. Resident Biden says companies with federal contracts will lose those contracts if they don't mandate vaccines. Southwest Airlines has not backpedaled; mandates no longer required. Southwest Airlines with huge federal contracts. Let's see who blinks. Compare December 15, 2021, let's see if Southwest Airlines still has those federal contracts. Right before Christmas travel.
Millennials: have never seen a down market.
Bitcoin: up an astounding $2,500. Now trading at $66,500.
Dow: surging. Up another 200 points. At an all-time record.
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Twitter Tweets Today
Just sayin':
- "Crude on fire" after today's EIA report.
- China considering market intervention on coal.
- XOM debates abandoning some of its biggest oil and gas projects. Link to WSJ.
- US oil stockpiles at Cushing at lowest since October, 2018. Does it matter?
- Exactly correct, the Saudi position: Saudi energy minister, "Even if we made the crude available in tons and tons, who is going to burn it? Where are the refineries that will convert it? And who is in need? Are they in need of crude? Or natural gas?"
- Saudi energy minister: demand from gas-to-oil switch, up to 600,000 bpd from 500,000 just a week ago.
- US implied oil demand rose by almost two million bbls w/w to 21.832 million bpd.
- India: long-term oil demand from 4 million bpd today to 9 million bpd in 2040. They should have plenty of oil; the rest of the world -- other than China -- have said they will end need for oil by 2050. LOL. Link here. Direct to Platts here.
- Dow sets new all-time record.
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