Iran: No Need to Pull out the Party Hats
As Iran continues to attack strategic interests of the U.S. and Middle East, I remain doubtful anything will be signed today - unless it is in disappearing ink. Here is a "vignette analysis" coming from the Iranian side of the house.
"Why is Trump suddenly so eager to make a deal with Iran? The clue lies in the oil reserves at America’s heartland.
Despite boasting about “energy independence” and repeated declarations that war with Iran is worth the economic pain, the US energy economy is approaching its most dangerous point, and Trump knows it.
The clue lies in Cushing:
Cushing, Oklahoma, is a vital energy hub in the US, with a storage capacity of more than 75 million barrels of crude oil, more than 15% of all US reserves, not including the Strategic Petroleum Reserve.
105 days after the start of the war with Iran, the Cushing network is severely depleted, with only 21.6 million barrels in stock — effectively just the equivalent of an average day of US consumption.
Worse yet? US trade media say that crude levels below 20 million barrels should be considered effectively “empty,” “the bottom of a barrel that is mostly unusable sludge.”
If inventories fall another 100 million barrels, energy economists worry that pipelines will be unable to maintain sufficient pressure and refineries will be unable to process different types of fuel.
When that happens, oil markets, manipulated by Trump and his controversial Truth Social rants, will no longer be able to sustain the “all is well” energy."
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