JP Morgan is emphasizing that U.S. energy policy is likely to end up with $150-$200 per barrel oil costs in next year ($10/gal gasoline). [LINK] Whether that dire prediction comes true is anyone’s guess. However, consensus review makes nearing $100/barrel costs by the end of this year just as unnerving. ($6/gal gasoline). That outcome is the centerpiece for why Biden needs the Omicron variant to impact the demand side urgently.
New York – […] “We believe the evolution of coal prices might reflect supply, demand, cost of capital and energy transitioning issues for all fossil fuels, and it would certainly be possible that oil prices will follow the same pattern (inflation adjusted for oil, that would be in a $150-200/bbl range),” wrote a team of JPMorgan Chase & Co. strategists led by Marko Kolanovic. (read more)
This analysis essentially aligns with CTH outlooks and complements what Allianz Group chief economic advisor, Mohamed El-Erian, was saying yesterday [LINK] The Biden energy policy is specifically to blame for the current price increases across the entire energy sector.
All of Biden energy policy, and all of Biden spending around the Build Back Better agenda, is designed to take us from where we are now into some distant place where fossil fuels are not the energy mechanism; that’s the Green New Deal component of this. However, there is no policy for their transition – they stopped all current energy policy around oil and coal.
Biden halted pipelines, cancelled oil and gas leases, blocked expanded refinery capacity and regulated the entire U.S. oil industry into a place of diminished capacity. That is why energy prices have, as Obama promised, “necessarily skyrocketed.” And, we ain’t seen nothing yet. Depending on how cold it is this winter, you can expect natural gas and home heating oil to double in the next few months.
The near horizon looks pretty clear. Gasoline will keep rising fast and will cost $6 to $7/gal before next spring. There is no way under current Joe Biden policy to avoid this, unless he was to completely abandon his energy policy; that’s not likely. The climate change ideologues, academics and far-left communists behind the Biden policy are not likely to see the catastrophic economic damage as a bad thing, instead they will likely say it’s the new normal.
With that level of supply side economic chaos seemingly unavoidable, the only way for Biden to try and mitigate political damage is an attempt to halt the demand side. That’s why the administration needs Omicron.
It is more important for our government to use Omicron than all other governments because we are the spending and ideological center. That is why we are seeing a much bigger emphasis upon the fear of Omicron by our government; and that is why the descending levels of variant emphasis/fear fall in line depending on how closely other nations are aligned as allies.
Meanwhile… China, Iran and Russia (adversaries on an ideological level) know what is happening, and to the extent they can drive U.S. inflation even higher, they will. Our adversaries know how to use Biden’s policy to make massive inflation hurt the U.S. disproportionately. This is why OPEC is giving Biden the middle finger on his ‘request’ to increase oil production, and this is why China is now triggering shipping quarantines. (more)
Again, as repeated previously, our window to prepare for a massive jump in inflation is slowly closing. We are down to around 60 days, and then things will get really ugly. The people behind Joe Biden know this. Omicron is a tool they are attempting to use to moderate the speed of impact within the inflation window.
WASHINGTON – […] The main driver behind oil prices is supply and demand. And while the Omicron COVID-19 variant put a dent into oil prices on Friday, with investors fearing that potential country lockdowns would reduce travel and therefore lower demand for oil, JPMorgan viewed that price move as an overreaction.
“We believe the market may overestimate the impacts of the recent emergence of the Omicron variant of COVID-19 on oil prices during the US holiday period,” JPMorgan said in a Monday note, inferring that there will be little to no slowdown in holiday travels even as the Omicron variant spreads.
[…] With demand for oil likely to remain steady, supply will remain the key driver behind oil prices for years to come. And with OPEC+ “being firmly in the driver’s seat for oil prices,” JPMorgan thinks Brent will hit $120/bl in 2022, and could even overshoot to $150/bl in 2023, representing potential upside of as much as 100% from current levels. (read more)
The Inter-States were packed this week-end. I-94 was bumper to bumper for miles – This means thousands of drivers were paying at the pump for Clueless Joe’s lack of an energy plan.
Hope all of those guys spending $50 plus to fill their tanks remember this in 2022.
Lack of an energy plan ???
This IS their energy plan !!!
“The climate change ideologues, academics and far-left communists behind the Biden policy are not likely to see the catastrophic economic damage as a bad thing, instead they will likely say it’s the new normal.”
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“That’s Brave New Normal, comrades! Embrace the giant sucking sound emanating from the Deep Cesspool that is Sodom on the Potomac …”
Maybe they need yet another virus scam and lockdown to tamp down demand, but people are literally jeering the latest scam! I’ve listened to several pundits today and all of them and their guests are ridiculing the new fear tactic.
Seems that even “normal” people are desensitized to their fear-mongering.
Anyone that doesn’t see the obvious wealth transfer under the criminally corrupt Kenyan’s very slightly masked by the Green New Scam and Build Back If There’s Anything Left farce has their heads up their azz
Of course they have no policy or plan about transitioning from coal and oil to “renewables”. Leftists don’t have a clue about how anything, especially the energy business, actually works. All they know how to do is destroy, disrupt, and screw things up. First piece of evidence – the totally clueless Energy Secretary.
Their plan is kind of like jumping out of a plane without a parachute hoping one will just materialize out of thin air before they hit the ground. THUD!
The state of this country reminds me the old novel “Atlas Shrugged”
The collapse of society is like from the book.
“Who is John Galt?”
Omicron?? No no it’s the OmiCON fake virus. Smart people have had enough of the Wuhan con.
I think moronic is the word you are looking for.
The Democrat Marxists know the peasants will be angry about rapidly rising inflation for energy, food, and most staples. They must be counting on media propganda to control the peoples’ minds and convince them (1) things are not that bad and prices will come down soon if only Democrats remain in power, (2) all the inflation and bad economy is caused by the evil Republicans and their leader Trump. Of course anyone with a brain knows this is nonsense. But the majority opf voters don’t have a brain and believe media lies. Unfortunately propaganda works and always has.
Friends from The Netherlands report gas is over $9/gallon there today (it’s sold by liter, but gallon price $9+.
We’ve been storing up for awhile.
Moved my mom from IA to WA, east side of the state, last month,as we are concerned about her living so far away from help if its needed. She’s almost 80.
The advice about being more comfortable with our firearms is noted and will be taken seriously.
I’m a glass 1/2 full kind of person so will continue to have fun and encourage others.
That said, being prepared for if the glass is less than 1/2 full just makes sense.
God bless SD and those on here who seriously are trying to help others be aware and prepared.
cross posted at https://freedomaustralia.freeforums.net/thread/1694/trump-mean-tweets
Millions of retirees in America cannot survive the massive price increases that are already rippling through the economy due to energy costs skyrocketing. If Joe’s handlers don’t reverse course the United States might not exist by 2022.
Wouldn’t a policy of new technology that is more efficient and cleaner in the use of fossil fuels be better than just to stop using them? Right now we have electricity from clean burning natural gas and could reinvent the nuclear power plant along with clean coal plants and a Manhattan project style development program for small hydrogen power plants.
America is not a quitter country. Where would we be if we stopped building buildings because some fell down. Where would be if the Wright brothers quit because they crashed the first planes? Where would we be if we stopped building ships because some early designs just sunk?