Will the Biden regime continue to sell oil from the SPR?
Edit. The regime responds. The linked article was updated.
Edit. The regime before this move by OPEC
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Yeah, of course they aren’t going to refill the SPR, that’s only done during Republican administrations or right after the Democrats win re-election. Can’t be causing inflation going into an election, and there’s always an election coming up.
OPEC ANNOUNCE SURPRISE OIL CUTS OF AROUND 1.16 MILLION BARRELS PER DAY FROM MAY TO YEAR-END 2023.
I bet they didn’t refill any during that time it was <$70/barrel, and here we are back at $80. Lost opportunity, but our current politicians are about re-election not making a profit or national energy security it seems.
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Probably due to increased prices, but people also buying higher end cars
https://thehill.com/business/3934301-new-cars-have-become-luxury-items/
The average price for a new vehicle hit $49,500 at the end of last year, compared to $38,948 just three years earlier. Skyrocketing interest rates pushed the average monthly car payment on a five-year loan to $723 in March.
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At least today’s cars might last the five years. It was only 2 or 3 decades ago that you couldn’t get a reputable car loan for longer that three years.
The stock market is closed today, but expect prices to drop on Monday. The bond market is open and interest rates went up a little bit.
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Why? The futures are up slightly.
The stock and bond market have been pricing in drops in the Fed rate later this year. This decreases the chance of that, which I think will be seen as negative by the stock market. Here’s what a zerohedge commentor said.
Was embraced by equity futures (though only back to barely green on the day)…
Edit. I guess stock futures are looking at the negative aspects of the report. The bond market overlooked them.
Core inflation pretty stable
https://wellsfargo.bluematrix.com/links2/html/52fa4697-c1ff-4515-a0ce-c933a5a8709d
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CPI for Mar out
- CPI (MOM) ACTUAL: 0.1% VS 0.4% PREVIOUS; EST 0.2%
- CPI (YOY) ACTUAL: 5.0% VS 6.0% PREVIOUS; EST 5.1%
- CORE CPI (MOM) (MAR) ACTUAL: 0.4% VS 0.5% PREVIOUS; EST 0.4%
- CORE CPI (YOY) (MAR) ACTUAL: 5.6% VS EST 5.6%
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Guess who hasnt refilled any of the Strategic Oil Reserve when oil hit $70? and now we’re back to $80. All talk, let the next Republican do it.
- US ENERGY SECRETARY GRANHOLM: THE US PLANS TO REFILL THE STRATEGIC OIL RESERVE.
- US ENERGY SECRETARY GRANHOLM: THE US WANTS TO BRING SPR BACK TO PRE-UKRAINE WAR LEVELS.
This chart seems to show they’re still dumping oil out, while talking about the opposite.
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bump
Fed watching
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Fed comments
- FED’S BOSTIC: AFTER ONE MORE INTEREST RATE HIKE, US CENTRAL BANK CAN PAUSE AND ASSESS
- FED’S BOSTIC: SVB FAILURE AND BANK STRESS INCITED RE-EXAMINATION OF POLICY AT LAST MEETING, BUT SITUATION CALMED QUICKLY AND ALLOWED CONTINUED FOCUS ON INFLATION.
- BOSTIC: RECENT INFLATION DATA ENCOURAGING THOUGH PRICES STILL RISING TOO FAST; FED NEEDS TO DO MORE
- BOSTIC: FED WILL NEED TO PAUSE AND ASSESS ECONOMY, INFLATION PATH, TO AVOID UNNECESSARY ECONOMIC DAMAGE
- FED’S BOSTIC: THE FED WILL NEED TO PAUSE AND EVALUATE THE ECONOMY, INFLATION PATH, TO AVOID UNNECESSARY ECONOMIC DAMAGE.
- FED’S BOSTIC: RECENT INFLATION DATA ENCOURAGING HOWEVER PRICES ARE STILL INCREASING TOO QUICKLY. THE FED NEEDS TO DO MORE.
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I’ve been asked about the reserve status of the USD and possible threats to that, either by the US’s actions weakening the dollar (inflation, etc), or by the shifting political alliances among OPEC and others to use non-USD currencies for their trade. I don’t have a strong view on this, but I thought this was a good parody.
The world has changed.
I feel it in the price of eggs.
I see it in the diesel shortage.
I smell it in the CPI
Much of what the dollar was…is lost.
It began with the printing presses of the Federal Reserve…
To save citizens from losing their jobs…
To deliver businesses from a bad economy…
And sold US Treasuries to foreign countries.
And in all, Seven…Seven trillion US dollars are held as reserves in in these counties.
For with the USD, laid the power to perform international trade.
Buy they were all of them deceived.
For in the deepest recesses of the Federal Reserve, the powerful Chairman of the Federal Reserve poured all his ink into the printing presses.
One currency, to rule them all!
One by one, the foreign lands fell to the power of the currency.
But here were some who resisted.
A last alliance of Brazil Russia China and the Middle East…fought for freedom from the USD.
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bump
Oil reserves. Confirmation they have been selling, not buying.
US SPR RESERVES OF CRUDE OIL FELL BY 1.58 MILLION BARRELS LAST WEEK TO 368 MILLION BARRELS. THE LOWEST SINCE OCTOBER 1983 - DEPT OF ENERGY.
meanwhile, record domestic production casts doubt on that National Insecurity policy.
EIA: US OIL OUTPUT FROM TOP SHALE-PRODUCING REGIONS AND PERMIAN OIL OUTPUT ARE DUE TO RISE TO HIGHEST ON RECORD IN MAY.
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Ray Dalio, hedge fund founder and recently economic theorist, sees troubles ahead.
Looking at the long-term debt cycle, debt asset and debt liability levels have become unsustainably high via unsound finances, and debts are projected to increase so much that they will have to be bought by central banks (who themselves are close to having negative net worths because of the big losses they have on the debts they already bought). Given these conditions, it appears that interest rates that are high enough (and money and credit that is tight enough) to fight inflation and provide lender-creditors with adequate real returns will be unbearably high for borrower-debtors. This means the system is close to the point where big restructurings will be needed.
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All savers have been paid negative real rates for many years. But where else are you going to go to?
That does not include that inflation is taxed. Even tips and ibonds do not have a large enough real rate to give a positive real after tax return.
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The all important guidance from fed chairman Powell. So far has not moved the stock market much
Edit. 2/year note 3.91% 10:year 3.39%
“With today’s increase in the target range, the stance of monetary policy is sufficiently restrictive to return inflation to 2 percent over time. However, the Committee is prepared to tighten further the stance of monetary policy as warranted.”
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Biden regime continues to drain oil from the strategic petroleum reserve, 2 million barrels in April. This, despite the price of oil being well below $70 a barrel. The reserve is at its lowest level since October 1983.
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