Kayfabe is in full effect this week when it comes to Syria and the alleged poison gas attack. Aside from the obviously hollywood-esque “kick the dog” move that gassing your own citizens would be, the major tip-off that Syria is just another opportunity to concentrate Middle-East tensions is both the Saudi and Russian hunger for higher oil prices. The U.S. needs them too, so Trump is ever-ready in his Andy Kaufman Heel routine to tweet out all kinds of market quaking rhetoric, and the Russians are ever ready to troll as they always troll.
Goldman Sachs, publicly speaking, is the Commanders Of The Obvious, piping up to say Oil would reach $72 a barrel on Thursday. This was well timed enough to make them look like geniuses (which admittedly they actually are), but the information was a bit late. It was already going up on Monday, with every indication that it would rally who knows how high.
The Guardian’s Jason Wilson penned a curious piece asking why the “alt-right” (whatever the hell that means anymore) is so anti-war while the “left” is so on board with intervention in Syria. The idea that someone so stupid is writing for the Guardian beggars belief. The left is motivated by secular morality, war is just for a just cause. The left will always be pro-war if they manage to talk themselves into righteous indignation over a “dictator” or “monster”, which is precisely what they allege Assad is.
This is all taking place while secondary actors, like the conveniently inept Houthi Rebels who keep firing pointlessly ineffective missiles at Saudi oil production properties. Oh, that’s not going to drive the price of oil up just like the Saudis revealed they wanted.
This rally in Oil is 100% driven by the geopolitics in question. For once though, the financial needs of multiple actors are being satisfied by a significant oil price rally. In fact, everyone is winning here. The US is winning, Saudi Arabia is winning, Russia is winning. All of OPEC is winning, on and btw, don’t forget PDVSA is having trouble, so it’s like double winning.
People always say the market is rigged. Yes, it is. That’s a good thing.
Right now $BP is up about 0.20, and $HP is up about 0.92. %BRENT is trading at $72 and %WTI is at $67, with which I am well pleased.