The Situation Room: The State of Affairs upon My Return from London
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The Situation Room: The State of Affairs upon My Return from London

by | published July 8th, 2019

Welcome back from your July 4th weekend, everyone. I hope you all had a memorable celebration of our nation’s independence.

For me, the long weekend led directly into market and geopolitical analysis. There are very few people who believe we can avoid war in the Persian Gulf. But though this situation seems to take over all the recent rhetoric, there is much more going on in the energy world. Things like the spread of solar energy, more drama with oil tankers, and the ever-present volatility in the price of oil.

So, let’s get started…

1. The Benchmark Spread Continues

The spread is widening between oil benchmarks West Texas Intermediate (WTI) – used to set futures contracts in New York – and Brent – the equivalent set in London.

Now, Brent has had a higher price than WTI for all but a few daily sessions since mid-August 2010 and is again increasing, and appears to be reflecting the OPEC production cuts and the rising problems in the Persian Gulf. WTI seems to be languishing because of continuing U.S. production volume.

I will be investigating this situation closely to uncover the underlying implications.

Reap the Benefits of My Contact List

The meetings I attended in London only emphasized my lifetime of cultivating contacts in the geopolitical and energy industries.It’s this list of contacts that allows me to do what I do, and to stay up-to-date on the latest developments in all the relevant markets I deal with on a day-to-day basis.

However, my revolving door of global contacts does much more than keep me updated on the geopolitical and energy situations. It also allows me to know exactly where the profits are in any given market.

This is my Rolodex. The long list of contacts in the industry that give me an edge in the cutthroat business of investing. And I’m sharing these benefits with you today.

If you’d like to pad your wallet from the information my contacts give me, just click here to get started.

2. More Tanker Drama

On Friday, the UK interdicted an Iranian tanker moving crude oil to Syria. This seizure took place off of the island of Gibraltar and has added a new threat level to the Iranian situation in the Persian Gulf.

While the UK has remained in support of the nuclear treaty with Teheran (the one the U.S. has pulled out of producing the current Washington renewal of sanctions against Iran) and has agreed to the recent INSTEX accord to set up continuing trade connections with Iran, the Syrian location to which the crude was heading remains under EU sanctions. London is now bracing for an Iranian response.

Time will tell how this situation will play out.

Sincerely,


Kent

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