You can fool some of the people, sometimes, but not Wall Street! Well, all analysts don’t agree, But, they their collective opinion on the trajectory of oil prices, is clear: Straight up for now.

It’s clear that Trump’s optimism and indifferemce (it’s not our oil) to the shutdown of the Strait of Hormuz didn’t win over many investors. His speech was good for 15 minutes on Fox News, but that’s it. The average gas price is $4.12, but prices are reported much higher in California. The US Oil fund closed up 11% on Thursday, April 2.

I don’t think there is any quick solution, particularly the kind that Trump prefers (bombs). Good reporting means being there, not sitting in groups on sofas (yes -Fox News) making jokes. Being there means getting on a boat and filming stranded tankers anchored in the Strait. It’s not hard, as they likely began from Oman.

YouTube BBC Link: Strait of Hormuz remains effectively closed despite Trump’s threats to Iran | BBC News

I don’t usually post YouTube links, but this one from CNN commentator, Fareed Zakarian is excellent.

Iran is now making twice as much oil money since war began | Fareed’s Take

At the end of his “take”, he provides a list of winners and losers to the war. If Iran is able to charge tankers for passage through the Strait, it is a winner, and can start to rebuild its military. Trump has relaxed sanctions against Russia, to increase world oil supply and with the surge in oil prices, Russia is a winner.

On the losers side (beyond the US), is Ukraine, with the diversion of military equipment to support the war, and Trump’s verbal attacks on NATO, threatening most recently to pull out of NATO. Also, European countries are suffering with the high cost of oil. Saudi Arabia is also a loser as its worldwide investments suffer.

On the winners side,are both China and Russia. With Trump loosening sanctions against Russian oil exports, Russia gains as Ukraine suffers.

Not good. Stay tuned,

Dave

.