Geopolitics affects prices. Who can dispute it? But rarely
are the consequences so blatant.
The crushing of Venezuela serves US interests in Latin
America but the degradation of their oil sector will additionally help North
American production. The US and Canadian systems are diverse but much of it
rests on high-cost extraction methods. The price of oil has to be up for it to
be profitable.
Venezuela and Iran being somewhat knocked out of the picture
helps Washington on multiple fronts... and some of its allies.
The Saudis who are in a proxy war with Iran will also benefit
from rising prices.
Of course some in Washington will be less happy as Russia
also stands to gain.
It's a tug-of-war and everyone is gaming against everyone
else and yet I know that some in power are particularly gleeful when the
economics and the geopolitics gel nicely... as they do here.
Even the strategists, spooks and schemers like to line their
pockets. And if they speculated and played around in the futures market,
knowing full well what was coming, they can make a fortune and they can do it
with impunity.
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