No. of Recommendations: 4
To believe that you would also have to believe that Trump is capable of making strategic decisions and following through with a plan, which seems terribly unlikely based on history.
I assume God and Savior Trump has the best advice money can buy. There is persistent chatter that, in the summer of 2024, Trump the God offered big oil "everything it wants", for a $1B "donation". I expect he has been receiving "advice" ever since. I expect the upcoming meeting chaired by Vance, hosted by the API, will offer more "advice" to the regime.
By contrast, the world daily production is between 85 million and 105 million bbl, so you’re looking at an increase of one-tenth of one percent (0.1%) in daily stocks of oil.
Thanks to the constraint on supply, the profit gain will be wildly disproportionate to the volume gain. And, keep in mind, the crude inventory "much higher than expected" increases over the last several weeks. Big oil has capacity to increase domestic production, as well as increasing production in VZ. As soon as Trump the Conqueror bought off the VZ regime, Chevron said it could increase production significantly, with little additional work. These increases in US controlled production may be minor, compared to global production, but the profits won't be minor.
In the distant past, "Rant #1" held that the objective of invading Iraq was to take their production off line, to tighten supplies, to increase prices and profits, for the big oil cronies of the Bush junta. Trump the Magnificent is doing an even better job, blowing up the entire Persian Gulf.
Steve
