Yet, the fall out was not just in oil. The stock market broke hard but is coming back on talk that the Fed may have to slow down on interest rate increases because of a potential oil shock to the economy. Grain markets are also soaring as the Ukraine is a major grain exporter.
Reports are also coming out that the Russian representative to the Iranian nuclear talks tweeted that the talks are nearing the finish line. Are they talking about the Iranian talks or are they talking about the Ukraine invasion?
Because of what is going on between Russia, Ukraine and the West, it is ridiculous to consider that U.S. is going to continue with the Iranian nuclear talks. The Biden administration continues to empower our foes with their anti-fossil fuel policies and war against U.S. oil and gas and his policies have only enriched Russia and Iran. Now, Biden wants to give Iran more money and the ability to continue to wreak havoc in the region.
Iran is just crazy. What is it with Biden that he wants to appease these dangerous leaders in the world. It is the weakness that Biden has shown that has allowed Putin to make his move. It’s just unbelievable all the damage that Biden has done since he’s been elected, not only to our economy but to the stability of world peace.
U.S. oil supply should also see declines despite Biden's SPR Release. Private sources show it fell by 1.657 million barrels in the Cushing, Oklahoma, delivery point. We should see crude supply fall 3.0 million barrels. We should see gasoline supply fall by 1.5 million barrels. Distillate down 2.0 runs up 0.5.
Natural gas also popped on cold weather and the Russia-Ukraine situation. The U.S. can only export so much LNG.