King Trump Shouts at the Ocean: Stop the Waves

Trump believes all he has to do to make things happen is to issue an ultimatum. One Tweet will explain.

Image modified from King Cnut and the Waves.

Hello Mr,. President gas prices are up because of your absurd embargo on Iran.

And here's the deal: The more effective your embargo, the higher gas prices will go.

I have a suggestion. Please study Econ 101.

Meanwhile, please note that shouting at waves will not produce results.

Mike "Mish" Shedlock

Comments (24)
No. 1-24
Realist4ever
Realist4ever

Absurd embargo on Iran. Really??!!

Mike Mish Shedlock
Mike Mish Shedlock

Editor

Yes, blatantly stupid. I was too polite with "absurd". Even our own generals admit Iran was honoring the deal.

Mike1608
Mike1608

Trump place embargoes on Iran,. Venezuela is falling apart (the military has taken over drinking water trucks so water & food come ahead of oil). The Libyan military have closed 2 more ports removing another 850,000 bopd of production. Coal is in decline and rightfully so since it is dirty and destroys the environment while extracting it. All of these factors increase demand.

On the supply side, the Permian basin in the US is limited by pipeline capacity issues. The Saudis can't ramp up oil production quickly since they need to drill more wellswith is a slow process. Same for the Russians.

Oil will see $80/bbl before we see 60. i wouldn't be surprised if we see $100/bbl before it drops to 40. Bottom line: Trump tweets do not trump supply/demand economics. Trump having his daily mentally unstable meltdowns. Does he stroke out or start military action somewhere first? Military action will only raise prices, if he strokes out, that will be bad for oil prices.

caradoc-again
caradoc-again

Some Iranian threats to choke the Gulf oil shipping lanes. US says it will keep them open. Nov 4th is a deadline. Every chance of conflict as things come to a head.

If blockage is a credible threat oil will rise as rates rise as trade slows = recession. Not to mention direct armed face off with Iran vs US at sea.

Will the markets signal this early as probable outcome or will they continue on their merry way?

Does anyone care?

The complacency either signals nothing to worry about or stupidity.