Another beneficiary to high oil price is Canadian Oil Sands. At $40-60 per barrel production cost, it can cover the slack due to sanction.
Higher oil and commodities would have severe consequences to the US and Europe. These are analysts saying it. https://www.cnbc.com/2022/03/03/rus...ear-the-west-may-soon-hit-energy-exports.html
Oil sands is thick and very hard to refine. Not all refineries can handle it. The US can but, Biden knocked the Keystone Pipeline out for good. They now have to truck oil sands by rail cars which adds to its cost, the risk of an accident spilling that thick crude in areas of the US where people live. It is much safer to transport that thick oil thru a pipeline and costs less but, Biden made a decision to kill the pipeline. I guess he wants to enrich Warren Buffet some more. He owns a railroad company which stands to benefit from it. There is not enough oil supply once, you take out Russia's oil production, that is 10-14% of world oil supplies.
seems that if you follow this situation and play out most of the scenarios...only lower demand can kill this kind of inflation. So the fed will try to hike enough to stifle demand just enough and also avoid a serious recession...easier said than done. Oil is out of their control. So they have to reduce demand with a series of rate hikes and then maybe lower rates quickly just afterwards...this may take us all the way through the summer. Oil probably high all the way through the summer...Fall is always a very slow period for oil demand anyway.
The Federal Reserve has been behind the 8 ball. They kept postponing the rate hikes and now, inflation is raging out of control. Will they raise interest rates a full 2%? Probably, not, they only promised to raise 0.25% which will not help too much. Alan Greenspan when he was Federal Reserve chairman, raised interest rates but, you was playing catch up and the market crashed after multiple rate hikes, far larger than the 0.25% Jerome Powell is proposing. This will happen again.
I kinda wish we could gather a no confidence vote ..like they do in UK.. and hold special election for President...Bring in Trump quickly...and we have a brand new situation with Russia negotiating a peace pretty quickly.
I was with you until the "bring in Trump quickly" part. We need to move past that if we hope to improve things in the US. Believe it or not, it is possible to have solid policies to resolve the destruction of the last year without all the pettiness and South Park behavior. Conservatives could spend the next decade putting the US back on top in so many categories. It would be a shame to waste this opportunity fighting over Trump.
They could have avoided this war if the Budapest Memorandum, the US, UK, France should have given Ukraine automatic NATO membership to give up their nuclear missiles to Russia. Instead, the Ukrainians got empty security guarantees. Also, when Russian troops were massed at the Ukrainian border, you had Joe Biden talk with Vladimir Putin 2 times, Emmanuel Macron 2 times, Boris Johnson 1 time, Lavrov with Blinken, multiple times but, they would not give Russia any security guarantees. If NATO gave a little which is Ukraine would be neutral and never be a NATO member, US and NATO will support Ukraine in the event Russia invaded Ukraine, Estonia, Latvia, Poland would not have any tactical nuclear missiles or intercontinental ballistic missiles on its soil (they still have NATO article 5 as protection) have inspectors in Ukraine, Estonia, Latvia and Poland like the inspectors of the SALT 1 & 2 treaties between Russia and the US, then, NATO can probably, have Vladimir Putin back down because he can claim he got huge concessions from NATO and saved some face. Now, it is too late because NATO chose to try and stop Putin using sanctions alone. NATO gave Putin squat so, he decided, he would take what he wanted.
The main three things Moscow has feared with certainty over the last 300 years: 1800s 5-million Frenchmen who were on their way to light Moscow aflame. 1900s SS-Panzer Divisions headed on toward Moscow to finish where Napoleon failed at. 2000s Ukrainian civilians ready to reverse the direction of the Red army, and topple Moscow. I suppose we could have added 'Trump' into this, as has been mentioned elsewhere-- the 'bad evil white-man' who was a racist and a bully by trying to strengthen the US army so that countries like China wouldn't do things like this. But... that was not politically correct at the time during the cancel-culture uprising. We still sensor that man all over Facebook and Twitter including anyone else associated with him in any way, just like Europeans did to Jews, but this time it's ok because this time it's different ehh?
I heard this shit so many times about 'Killary' and so many other presidents. Does it even mean anything?