The price of gasoline is driving inflation to new levels. The economic breakout from the pandemic lock-down and the lack of workers has driven wages and prices up. The gas price coupled with an overheating economy and a monthly contraction signals the risk of stagflation. The OPEC embargo of the 70’s is an example of the same situation. The “cure” was interest rate raises by the Fed and 5 years of economic hardship.
Oil has risen from $21.48 a barrel in April to $109.75 on June 21st. What has caused this price jump? (source Macrotrends). In 2021 the US imported about 8.47 million b/d (barrels per day) and exported 8.63m b/d (EIA). Currently the US is pumping about 12 m b/d (EIA).
Failure to permit building of the Keystone pipeline? Incorrect; the US is a net exporter of oil. We pump more oil than we need to produce petroleum products. Adding more oil will not affect gasoline supply. Presently the US is pumping 12m b/d. The pipeline if it existed would deliver 500,000 b/d.
Inability of US refineries to refine US crude oil? Incorrect. Some say the oil industry has not been given permits to build new refineries. In truth it’s cheaper for them in the short term to keep importing foreign crude than to upgrade their refineries. Demand was slumping during the pandemic. Alternative fuels and electric vehicles are expected to lower demand in the long term. Trading with other nations helps cement diplomatic ties and finance our overseas allies.
The Russian invasion of Ukraine? Incorrect; the US is a net exporter of oil. We pump more oil than we need to produce petroleum products. Importing less oil will not affect gasoline supply. Partial sanctions against Russian gas and oil imports to Europe were imposed on 3 June. These sanctions mean more oil is required in the EU to make up for the loss of Russian imports. Other markets are hoping to fill the EU’s perceived needs by winter (Business Daily Africa). Because of this prices have risen but at the same rate that started in April (Macrotrends). In other words, the price increases started before the sanctions.
What are the potential results of oil price increases?
- Russian oil exports, only partially and recently embargoed, are worth much more money. This helps Putin finance his Ukraine War. Russian production has been near 11m b/d (Oil Price.com).
- It’s a midterm election year. The prices have affected Biden’s ratings by the under informed. It is possible the democrats could lose seats in Congress.
- Stagflation risks sending the economy into a downward spiral. This is another step toward weakening democracy and helping dictatorships. It can stimulate interest in Socialism.
BOTTOM LINE; THERE ARE NO LINES; FUEL LINES THAT IS
Creating a socialist revolution requires a messed up economy. Marxist rhetoric falls on deaf ears otherwise. Creating an economic catastrophe seeds an environment for socialists to thrive in. The Great Recession of 2008 was a manufactured event. It was set up by Marx and his con artists Controllers through the repeal of the Glass Steagall Act. This had to do with conning the Left into believing it would help people with housing and the Right into thinking they could get rich. The market crash was kicked off with the collapse of Bear Stearn’s and Jeffrey Epstein was there.
Setting up an empire for themselves is a key element of the Controllers current strategy. They hate NATO and the US in particular. They want to destroy the West to help themselves dominate the world from their new digs next lifetime.
Could the Controllers of Mordor get enough influence over an oil company to hike prices at the pump? If they can control the right guy in each company maybe. There are 5 local refineries. Perhaps someone owned moved up the ranks or was followed by a MF to an important meeting.
In Genesis (Bereishit) chp 12 v12 – 20, Abraham <<<was able to use his wife/sister Sarah to help his buddy Hashem find the Pharaoh’s domicile. She was taken to him with Hashem in tow. It is difficult for out of body MFs to navigate. Once there he was able to wreak such havoc the Pharaoh “commanded men on his (Abraham’s) behalf” and gave him stock animals and servants. Pharaoh was under the control of Hashem, get it?
Do they have enough pull to affect production in OPEC nations like Saudi Arabia whom they attempted to blame 9/11 on? Depends on if the Crown Prince knows he has been set up by them or not. Depends on if he has any suspicions about what really happened to Khashoggi in Erdogan‘s <<Turkiye (pronounced Tur KAY) or not.