Phil Flynn is writer of The Energy Report, a daily market commentary discussing oil, the Middle East, American government, economics, and their effects on the world's energies markets, as well as other commodity markets. Contact Mr. Flynn at (888) 264-5665
T’was the Last Energy Report Before Christmas, as oil breaks out, after fears of more lockdowns were put in serious doubt. The Omicron variant gave traders a scare and they sold oil in an abundance of care.
Yet data now shows they have nothing to dread as the variant will not fill up hospital beds. Mild cases of omicron soon will be capped and the bears in the market are caught in a trap.
Joe Biden spoke and it created a chatter, it’s not lockdowns but vaccines that will matter.
Away went the oil, it flew like a flash, making us wonder why it ever did crash. Yet in Europe they can’t heat their chateaus as natural gas shortages are costing big dough. Their energy transition is costing them dear and the impact on their economy could last for years.
Because of climate change they moved way too quick and dependence on Russian supply is making them sick. To become more dependent on Putin was so insane, but they did it anyway and I’ll call them by name. Now Britain, now Belgium, now Cyprus and Poland. On Merkel, on Johnson, on Malta, and Sweden.
Europe is behind the eight ball if Russian production happens to fall. Without Russian gas they cannot make do, especially with winter that they have to get through. Because already the prices have shot through the roof and alternative energy can’t survive the burden of truth. Fossil fuels will still be around unless you want the power grid down.
From Biden’s war on oil, he must backtrack, unless he wants even more inflation to come back. While his eyes twinkle and has a nose like a cheery, but the rise in the gas price has been making him wary. He begged for OPEC to soften the blow, but it is the U.S. producer where he needed to go. It was the shale oil producer that gave our bull market some teeth as energy independence was found right under our feet.
We could produce oil and fertilizer so food could fill up our belly, as well as gas, plastics and petroleum jelly. We did not need OPEC, we could do it ourselves drilling on land or the ocean shelf. For OPEC, shale oil was something to dread as we took market share and played with their head.
We just need all our guys to go back to work, so we can stop oil prices from going berserk. It’s not wind and solar that I oppose, but we need all source of energy to make the economy go. So environmentalists I know just might bristle, but they still need energy to make that old teapot whistle. Without all forms of energy, prices will go out of sight but to them and all of you Merry Christmas and good night!
And as a tradition, I’ve used this verse every year since 2001. Our soldiers are fighting in lands far away and we must remember to pray for them each passing day. It is for freedom that they are putting up this incredible fight, so to them and all of you Merry Christmas and Good Night.
Merry Christmas and God Bless You All! No Trade Levels or Energy Report tomorrow.
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