The Situation Room: A Great Trade Relationship No More
After some whirlwind events last week – including the Fed rate cut, additional tariffs on $300 billion worth of Chinese goods, and the Democrat Party debates – I enjoyed a relaxing weekend.
So, this morning, I’m ready for what the energy world has to offer – and trust me, that’s quite a bit.
Market open this morning showed some impressive decreases in oil prices thanks to the additional tariff threats from President Trump. As of this writing, international oil prices are down approximately 5% since Thursday, and they’re still falling. In fact, experts are predicting a downturn that will last for the rest of the summer.
Suffice it to say that I’ll be keeping a close eye on the direction of oil prices. Not to mention an even closer eye on the geopolitical situation.
Here are the top two geopolitical situations I’ll be watching this week…
1. Overlooking Crucial Developments
First, I’ll be looking into reports that India is increasing oil imports from Venezuela as Iranian volume declines. According to these reports, these imports have surged to a two-year high, after India stopped buying Iranian oil back in May.
This is a move that has been silently overlooked by Washington despite its parallel opposition to the governments in both Caracas and Teheran.
How You Can Prepare for War with ChinaThe U.S. and China used to have an amicable, if slightly cool, relationship. For years, China was the U.S.’s top trading partner, but this partnership is no more. China’s top trading partner these days is Mexico, followed closely by Canada. It’s not hard to see the reason for this change in the status quo – after all, it’s all the headlines have been blaring about. However, the economic conflict between the U.S. and China is only the tip of the iceberg. If tensions continue to escalate in this way, I fear we’re heading toward war. And a place like the South China Sea is the perfect brewing spot for it to begin. The Chinese weaponry is top notch – but the U.S. is not far behind, not with the funding certain defense contractors have been receiving from the Pentagon. Learn all about it right here. |
2. The Latest in Energy Demand
Next, I will be analyzing new data that suggests energy demand expectations are being tempered by concerns over U.S. expected tariff moves against both China and Europe.
It seems that recent tweets have had more effect on the energy market than Iran has – and that’s certainly saying something.
Sincerely,
Kent
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