• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
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  • 2 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 7 hours Mr
  • 16 hours While China was covering up Covid-19 it went on an international buying spree for ventilators and masks. From Jan 7th until the end of February China bought 2.2 Billion masks !
  • 4 hours Free market or Freeloading off the work of others?
  • 4 hours China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 5 hours Marine based energy generation
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  • 19 hours Apple to Bypass Internet and Beam Directly to Phones
  • 11 hours Which producers will shut in first?
  • 18 hours Real Death Toll In CCP Virus May Be 12X Official Toll

Oil Is At The Center Of The 2020 Elections

Trump

Donald Trump faces an interesting set of economic and geopolitical circumstances heading into the 2020 election. The President would obviously like the US to be in strong economic shape with robust GDP growth, low unemployment and low interest rates in November of next year. But he also would like to be ‘tough’ on China and Iran. Unfortunately, being tough on Iran comes at the cost of driving gasoline prices higher – something Mr. Trump hates- and being tough on China comes at the cost of lower GDP growth. But there is one potential short-term fix to this pair of issues which Trump can use to help provide an economic salve to voters via cheap gasoline and even gain apply as a bargaining chip with Beijing; let China buy a little more Iranian crude.

When it comes to politics and gasoline prices, the relationship is murky. It’s impossible to prove that high gas prices lead to lost elections, but we intuitively accept that voters don’t like their wallets to be squeezed at the pump. In somewhat recent US history, climbing fuel prices helped weaken consumers in the early 2000s before the tech crash and again 2006 and 2007 leading up to the housing market crash. Trump obviously wants American voters to feel financially confident on their way to the voting booth and cheap gasoline is an important part of this recipe.

Fortunately for Trump, he has an extremely valuable insurance policy against higher gasoline prices in his ability to let China…




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