By Charles Stampul
The second Yom Kippur War started Saturday with America’s emergency oil stockpile at a 40 year low. The first Yom Kippur War began on the same date 50 years ago. Oil doubled within a year.
The decision to drain strategic supply in hopes of easing pump prices was a mistake from the start. Not willing to admit to the mistake, the reserves have yet to be replenished. It may now be too late.
The US government has no long term budget. Congress could not agree to stop spending money to extend a war in Ukraine and passed a temporary resolution to keep the government funded until Nov 17th.
An effective president would order to have oil reserve caverns refilled immediately. He would take the argument over Ukraine aid off the table by brokering a settlement between Ukraine and Russia. An effective president would push Congress to pass a long term budget that drastically cuts spending while addressing the threat at the southern border.
The coming rise in oil is an end to the fantasy of lower inflation. A total collapse in the dollar is more likely than most people realize.
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all you ftards that vote Democrat are responsible
The partisan hackery here certainly doesn’t represent a “laissez-faire point of view”.
What an audacious claim to make that an effective US president would be able to simply broker a settlement between one sovereign nation under attack by another, that does not have strong diplomatic ties to the US. In what way was opening the SPR a mistake from the start? Did it have no effect on inflation or gas prices whatsoever? Where would the oil come from while oil companies were still rebuilding following unprecedented lull in global demand combined with a glut resulting from price war between Saudi Arabia and Russia following the US shale boom? I suppose the US could have imported oil while the likes of XOM worked to reopen wells.
Mr. Stampul’s oversimplification either lacks critical thinking or miserably fails to justify his reasoning to the reader. One must then ask – what was the purpose of publishing this rant? Perhaps appealing to reason is not so important to this space as airing some finger-pointing emotional grievance.
12 hours after this was published, this headline ran behind a paywall “Oil Could Spike Well North Of $150.” You had it here first for free. On this blog on June 19, 2021 I gave the contrary opinion that Treasury yields would rise sharply. Since then yields on the ten year climbed from 1.5 to 4.7. There have been other such calls. Don’t be angry at opinions you can profit from.
Joes gotta go!