Talk about shaking up the global energy world order! America is back 100%! President Trump just increased energy demand expectations after announcing that he would consider a tax cut that would include 100% expensing for new US factories. That tax cut, coupled with the fact that the United States has some of the lowest natural gas prices in the industrialized world, will create a situation where we should see a surge of investment into the United States with new high-paying jobs.
The United States already has a huge home-field advantage when it comes to natural gas prices with the lowest price of hydro-carbon in the industrialized world and now with that 100% expensing will give more incentive for investors around the world to build their factories in America. That is only going to make good business sense along with the removal of ridiculous regulations and an anti-natural gas agenda by the previous administration. Biden-era policies hindered investment in factories, and it’s caused many companies to invest their money elsewhere.
The revelations from the DOGE audits suggest that the lack of development may be attributed to government corruption, potentially involving politicians seeking personal gain. Gee, I wonder what the Big Guy has been up to lately.
Last week the Trump Administration approved a Texas port capable of shipping 1.0 million barrels of oil a day proposed by Sentinel Midstream LLC.
Bloomberg News reported that, “The project, first proposed in 2019 and known as the Texas GulfLink Deepwater Port, had been awaiting a final authorization from the Transportation Department’s Maritime Administration. “That was held up for five years, and it was stonewalled,” Transportation Secretary Sean Duffy said Friday. “Bureaucrats got in the way, and now we are moving forward with that.” Duffy cast the port as important to “making sure we can move energy in and out of the country.”
Oil prices are holding their ground after a bearish API report but they’re still marked into a trading range. As Fox Weather reported, frigid cold temperatures are not only supporting natural gas but oil prices as well. Fox Weather reported that the arctic outbreak that has enveloped the central U.S. is hitting its peak Thursday as frigid temperatures continue to spread south and east across the nation. Extreme Cold Warnings and Cold Weather Advisories are posted for a vast swath of the country, stretching from Montana to Texas and eastward beyond the Mississippi River to northern Florida and parts of the Southeast. The sheer scale of the cold is staggering, with 230 million Americans experiencing temperatures below freezing. That is leading to production shutdowns because of the cold weather and is reducing flow.
At the same time, Bloomberg is reporting that we’re seeing increased exports from both Russia and Iran as they seek ways to avoid sanctions. Iran’s grand poohbah Ali Khamenei is begging Qatar to ignore the United States and free up some of its frozen cash. Iran is bleeding cash with the Trump Administration’s tougher enforcement which is making it more difficult for Iran’s economy. It could collapse and it’s going to be interesting to see what happens. Will Trump keep the pressure on and so these exports from Iran to China could cause trouble for anyone who deals with it?
Fox News is reporting that, “Iranian Crown Prince Reza Pahlavi is calling for global action to defeat the Islamic Republic’s regime. Pahlavi says the regime is “weaker than it has ever been” and the people of Iran are ready to take back their “stolen country.” Pahlavi spoke at the Geneva Summit for Human Rights and Democracy on Tuesday, highlighting the plight of the Iranian people, calling the country a “nation in chains,” and the oppressive nature of the Islamic Republic regime headed by Ayatollah Ali Khamenei.
The Trump Administration freezes funds to Palestinian security forces according to the Washington Post. Raphael Bostic President and Chief Executive Officer of the Federal Reserve Bank of Atlanta spoke some truth when it came to the false assumptions that tariffs cause inflation. Bostic said that, “While some policy proposals could add to inflation, others could boost productivity and lower price pressures.”
Bloomberg is reporting that, “European natural gas futures touched the lowest level in a month as US fuel exports extend a record-breaking run, helping to ease some supply worries. Benchmark contracts dropped as much as 4.7% to price since mid-January, before hovering near €48 a megawatt-hour. Increased output of liquefied natural gas from the US — Europe’s top supplier of the super-chilled fuel — is the latest in a string of bearish factors that have helped to turn around this year’s rally.
Oil prices remain between 70 to 73, with a potential breakout to 75. Although the report’s expectations were disappointing, strong demand in the upcoming weeks suggests solid support. Consider buying breaks and possibly selling like option strategies. The API reported that API: Crude Oil +3.339 Cush +1.684 Gasoline +2.832 Dist -2.689.
Natural gas shorts got squeezed in cold temperatures. NYMEX natural gas futures a two-year 4.476 intraday.