Home Forums Hunting & Shooting Hunter's Campfire Whitehouse quietly bracing for $200 barrel of oil

Stand with Ukraine! It’s for the kids! -John Burns

Rent free.

Putin chose to invade Ukraine with his Orc Army and you Putin Pufters cheered like teenage girls at a Justin Bieber concert.

Ukraine defending itself is not the reason for the rise in oil but it is the reason Europe is telling Biden to increase USA supply and why the Dutch are opening up their fields.

If your hero Putin had succeeded in rolling over Ukraine we would be even worse off in the long run.

Thanks Putin Pufter.

If they don't have a clue when it costs them 90 bucks to top off the Corolla - they'll never get it. Plus a lot of people are on managed plans where they don't pay over X amount - 12 months a year. Cost averaging it for folks usually.

If they don't have a clue when it costs them 90 bucks to top off the Corolla - they'll never get it. Plus a lot of people are on managed plans where they don't pay over X amount - 12 months a year. Cost averaging it for folks usually.

[color:#3366FF] This is just my opinion and analysis. kwg
It seems the January 6th hearings are the only distraction Joe Biden and team have going for them, right now. It appears the current administration only wants the January 6th hearings in front of Americans and no other distractions. Which is why the current administration and the main stream media are not allowing True the Vote and Dinesh D'Souza and the stolen 2020 election to become every day news for common Americans to see and evaluate. The last thing they want Americans to be talking about is the stolen 2020 election. Even if it means $10 a gallon gasoline is their NEW distraction. [/color]

https://www.zerohedge.com/commodities/white-house-quietly-modeling-shock-200-oil

White House Is Quietly Modeling For $200 Oil "Shock"
Tyler Durden's Photo
BY TYLER DURDEN
WEDNESDAY, JUN 29, 2022 - 12:05 PM


While the Biden administration is hoping and praying that someone - anyone - will watch the comical "Jan 6" kangaroo hearsay court taking place in Congress and meant to somehow block Trump from running for president in 2024 while also making hundreds of millions of Americans forget that the current administration could very well be the worst in US history, it is quietly preparing for the worst.

As none other than pro-Biden propaganda spinmaster CNN reports, when it comes to what really matters (at least according to Gallup), namely the economy, and specifically galloping gasoline prices, the White House is in a historic shambles.

For an administration that ended last year forecasting a leveling off of 40-year high inflation and eager to tout a historically rapid recovery from the pandemic-driven economic crisis, there is a level of frustration that comes with an acutely perilous moment. Asked by CNN about progress on a seemingly intractable challenge, another senior White House official responded flatly: "Which one?"

The suspects behind the historic implosion are well known: "soaring prices, teetering poll numbers and congressional majorities that appear to be on the brink have created no shortage of reasons for unease. Gas prices are hovering at or around $5 per gallon, plastered on signs and billboards across the country as a symbolic daily reminder of the reality -- one in which White House officials are extremely aware -- that the country's view of the economy is growing darker and taking Biden's political future with it."

"You don't have to be a very sophisticated person to know how lines of presidential approval and gas prices go historically in the United States," a senior White House official told CNN.

A CNN Poll of Polls average of ratings for Biden's handling of the presidency finds that 39% of Americans approve of the job he's doing. His numbers on the economy, gas prices and inflation specifically are even worse in recent polls. What CNN won't tell you is that Biden is now polling well below Trump at this time in his tenure.


The CNN article then goes into a lengthy analysis of what is behind the current gasoline crisis (those with lots of time to kill can read it here) and also tries to explains, without actually saying it, that the only thing that can fix the problem is more supply, but - as we first explained - this can't and won't happen because green fanatics and socialist environmentalists will never agree to boosting output.

Which brings us to the punchline: as CNN's Phil Mattingly writes, "instead of managing an economy in the midst of a natural rotation away from recovery and into a stable period of growth, economic officials are analyzing and modeling worst-case scenarios like what the shock of gas prices hitting $200 per barrel may mean for the economy."

Well, in an article titled "Give us a plan or give us someone to blame", this seems like both a plan, and someone to blame.

But unfortunately for Biden - and CNN which is hoping to reset expectations - it's only going to get worse, because as we noted moments ago, while nobody was paying attention, Cushing inventories dropped to just 1 million away from operational bottoms at roughly 20MM barrels. This means that the US is officially looking at tank bottoms.

But wait, there's more... or rather, it's even worse, because as even Bloomberg's chief energy guru Javier Blas notes, over the last 2 weeks, the US gov has drained 13.7 million barrels from the SPR, "and yet, commercial oil stockpiles still fell 3 million barrels over the period."

And here is the punchline: at the current record pace of SPR drainage, one way or another the Biden admin will have to end its artificial attempts to keep the price of oil lower some time in October (or risk entering a war with China over Taiwan with virtually no oil reserve). This means that unless Putin ends his war some time in the next 5 months, there is a non-trivial chance that oil will hit a record price around $200 - precisely the price the White House is bracing for - a few days before the midterms. While translates into $10+ gasoline.

And while one can speculate how much longer Democrats can continue the "Jan 6" dog and pony show as the entire economy implodes around them, how America will vote in November when gas is double digits should not be a mystery to anyone.

I think heating oil prices will be the tipping point for a lot of folks this winter.

People are generally stupid and it takes a bit kick in the nuts to change their mind. Being cold will do that.

Regionally, maybe.

But much of the country, and especially west of the Mississippi has no idea what "heating oil" is, or don't GAF because the only people that use it also eat scrapple.

Thank you duck of death for your super intelligent analysis.

How much did you make golfing with Chuck Yeager and Winston Churchill today?

Rent free.

Putin chose to invade Ukraine with his Orc Army and you Putin Pufters cheered like teenage girls at a Justin Bieber concert.

Ukraine defending itself is not the reason for the rise in oil but it is the reason Europe is telling Biden to increase USA supply and why the Dutch are opening up their fields.

If your hero Putin had succeeded in rolling over Ukraine we would be even worse off in the long run.

Thanks Putin Pufter.

MOST WON'T CARE...........

Regionally, maybe.

But much of the country, and especially west of the Mississippi has no idea what "heating oil" is, or don't GAF because the only people that use it also eat scrapple.