RE:RE:RE:RE:RE:Great opportunity this weekWell I think that mideast tensions will only escalate. At some point, maybe even now, people are going to start hoarding oil and bid up the futures markets.
I've been reading about the Houthis. There are deep tensions between them and other Islamic sects, namely Sunni Muslims. But the analysis that I read said that the Houthis don't seem to have an organized poltical agenda aimed at nation building which makes it difficult to organize peace deals with them. They're main agenda seems to be "death to Israel, death to America". They've attacked Saudi Arabia a number of times, the Riyad airport no less, and are now reported to have ballistic missiles.
So what I come away with is that even if Israel stands down, the Houthis will keep on attacking. The range of their current weaponry could easily hit the Suez Canal. Shutting that down would inflict huge damage on Europe which depends on the canal for much of it's trade and supplies of LNG. The Houthis are supported by Iran, Russia and North Korea according to what I read.
So I imagine that countries like India, China, Japan, South Korea are going to start hoarding oil, especially heavy oil needed to make diesel. Also, of note, Venezuela is not coming back online anytime soon so the only reliable source of heavier crudes in this hemisphere is Canada. Anyway, I wouldn't be surprised if the Dems now push to extend Keystone to Alberta.
That's another thing that is not clear to me. I keep on reading that much of Keystone is already built. The only piece missing is the extension into Canada. Gotta do some research on that.