The real reason why oil may be about to spike sharply higher comes out of Texas where an imminent power shock may lead to widespread oil infrastructure shutdowns.
Here is what a dealer for one of the larger institutional crude and products books writes in:
... looking like Texas may be short power for the next week or so. Wild rumors floating around that the Governor may call on industrials (ie refineries) to idle or significantly de-rate plants for up to a week to keep from having to black out residential consumers (Mom&Pop) in a heat wave. Don’t want to make folks sweat at home in the dark during an election year.
https://www.zerohedge.com/markets/oil-spikes-amid-rumor-texas-power-shock
Noah’s Nightly Newsletter – 7/8/22
https://truthlion.com/noahs-nightly-newsletter-7-8-22/
* BREAKING: SWAT Team Storm Steve Bannon’s Home
* Secret Service Director STEPS DOWN Here’s Why
* Just In: Elon Musk TERMINATES Twitter Deal
* Biden Reads “Repeat The Line” While Reading Off Teleprompter
* JUST IN: Wisconsin Supreme Court Rules Public Absentee Drop Boxes Illegal
* Trump 2024! Trump Releases Footage of Revamped Plane
Well, I hope this doesn’t happen. We should have learned something from the last outage. And I DON’T blame the governor for that! The circumstances just kept stacking up for it to happen.