About The Author

Phil Flynn

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

While oil prices fluctuate on concerns about Chinese demand and handicapping geopolitical risk factors there is at least one campaign that is preparing for the coming energy crunch. It’s the Green New Deal virus energy realities that are on the ballot.

One campaign has realistic solutions that put the energy power back into the private sector with limited taxpayer dollars spent adding strategic nuclear and lifting impedance to oil and gas production. They also want to encourage clean LNG exports to the world .

That is a stark contrast to an agenda that promises massive government spending on a green energy dream that is an inefficient boondoggle failure and a waste of billions of dollars of taxpayer money on electric cars that no one wants, costing auto makers billions in losses and charging station that are never built, just to name a few.

But before we get to that, Oil prices that have been sidetracked with the Israeli Hamas conflict should not be surprised that has rejected the US hostage-ceasefire proposal that Antony Blinken said was the last best hope for peace. The Israeli military did say that they recovered the bodies of six hostages taken in Hamas’ Oct. 7 attack that started the war.

Sadly, the Hamas attack was paid for with Iranian dollars that they amazed of the last four years

And while oil prices have been hit hard on concerns of weak oil demand in China and not concerned that US crude supplies have fallen 6 out of the last 7 weeks or that we are in a global oil supply deficit at this moment, the lack of global oil spare capacity and the amount of underinvestment is a simmering risk against US and global economy.

We should also see crude supply resume its crude draw this week. We are looking for crude down 2 million barrels or gasoline supply is down 2 million barrel and distillate down 2 million barrels and runs unchanged.

While the Biden Harris campaign has rallied against natural gas and fossil fuels, it gave OPEC more power as global spare production capacity is tightening. Now with the possibility that US oil production may be nearing a peak it puts all the world’s oil spare capacity mainly In Saudi Arabia/

S@P Global reported that “Support for crude markets is hinging on OPEC’s spare capacity as global demand continues to grow, APA Corp. executives said , while US production is expected to slow down in the near term.

Ben Rodgers, APA Corp warns that “If the Permian starts to flatten, US production growth will moderate in coming years, putting a lot of power in OPECs hands.”

The failure of the green new deal to add electric capacity or have a real plan to meet growing demand for power and the realty that a BIDEN/ Harris EPA rule would lead to sharply higher electricity bills as well as electricity shortages.

The EPA rule, which a federal appeals court ruled last month could be enforced, requires coal-fired power plants to shut down if they cannot capture 90% of their carbon emissions starting in 2032 according to the New York Post.

Trump said Monday that   “I am announcing today that when I return to the White House, I will end this anti-American-energy crusade and terminate Kamala’s so-called Power Plant Rule,’ “Instead of shutting down power plants, we will open dozens and dozens more.” He said that in regards to Vice President Harris, the co-sponsor for the Green New Deal that “Kamala stands for energy disappearance and factory obliteration. I stand for manufacturing dominance.  Kamala is on a regulatory jihad to shut down power plants all across America,” Trump said.

Trump also called for renewed investment in nuclear power, calling for advanced, small modular nuclear reactors online” to meet America’s energy demands.  “Small nuclear, we call it,” Trump said, describing nuclear energy as “ultra safe” and “ultra clean.”

The Green New Deal folks keep telling us that we need to keep up with China on the fight against climat change. Then  we had better go with trumps plan to expand nuclear.

Bloomberg is reporting that “China approved 11 nuclear reactors across five sites on Monday, a record amount of permits as the government leans even more heavily on atomic energy to support its push to

China has more nuclear reactors under construction than any other nation in the world, and approved 10 new reactors in each of the last two years. The country is expected to surpass France and the US to be the world’s leading atomic power generator by 2030, according to Bloomberg.

So, oil is up on the peace hopes dashed and ahead of inventories that look tight.

Reuters is reporting that “Russia hit energy infrastructure in northern Ukraine in an overnight missile and drone attack and caused a big fire in the west of the country, Ukrainian officials said on Tuesday.

Ukrainian forces shot down three ballistic missiles and 25 of the 26 drones launched in the attack on nine regions across the country, Ukraine’s air force commander said.

Regional officials in the northeastern Sumy region bordering Russia said an energy facility was hit, causing blackouts for 72 settlements and more than 18,500 consumers.

Crack spreads that got crushed are trying to bottom again with the diesel crack trying once again to get off the matt after a terrible beating.

Nat gas is trying to bottom but thee Wall Street Journal explains the  natural gas  markets challenges.

The Journal writes that “A glut of natural gas is depressing prices and prompting fresh cutbacks in America’s drilling fields, despite one of the hottest summers on record.

Big producers such as EQT and Coterra Energy are choking back output, waiting to connect new wells to pipelines and delaying drilling projects.

They aim to buoy prices that have rarely been lower during the heat of the summer, when air conditioning creates a lot of power demand. Benchmark natural-gas futures ended Monday at $2.235 per million British thermal units, down 15% from a year ago and 29% less than the recent peak in mid-June.

Make sure you stay tuned to the Fox Business Network for the convention.   You can also sign up for the Phil Flynn trade levels and manic metals report by calling me at 888-264-5665 or email me at pflynn@pricegroup.com.

 

Thanks,

Phil Flynn

Senior Market Analyst & Author of The Energy Report

Contributor to FOX Business Network

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