If you’ve been following the headlines, you know that soaring gas prices sparked the Biden Administration to finally open the strategic oil reserves over the weekend.
They’re releasing a record 50 million barrels of oil in an attempt to lower fuel costs, which have been climbing steadily higher most of the year.
Here’s a look at oil futures (CL!), which got hit hard by the omicron news like just about everything else:
The reality is, even though this is a “record” release of oil from the strategic reserves, the U.S. uses about 20 million barrels of oil per day.
That means that 50 million barrels only nets you about two and a half days worth of use.
So this release will probably make an impact, but it will take some time, and probably won’t be as noticeable a relief as the Biden Admin is hoping for.
However, a little bit north of the border, they’ve got an even worse crisis on their hands.
And I’ll tell you all about it after a word from our sponsors (me! Ha!)
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As I was saying, our neighbors to the north have some problems of their own, eh?
The Canadians are probably dealing with their own shortage of “black gold,” but they’re more concerned about a shortage of “liquid gold,” aka maple syrup.
Canada produces about 70% of the world’s maple syrup, with we in the US being the biggest importer. But apparently, this year’s demand worldwide has jumped 21%!
So — and this is no joke — The Federation of Quebec Maple Syrup Producers, a government-sanctioned conglomerate that controls the maple syrup reserves in the country, is tapping into their strategic reserves.
And they too are releasing roughly 50 million pounds of the reserve, about half of their total stockpile.
Forget the US oil reserves… breakfast is on the line!
Someone better warn my friend Rob Booker! He’s a pancake fiend!
Jokes aside, though, I do think this is just more evidence of exactly why inflation has become such a problem.
For the most part, demand hasn’t dropped off, but supply is at a standstill with labor shortages and shipping logjams.
So the prices of goods and services are increasing because there are a lot of people who want to buy them and only so many people who can sell them or so much quantity they can sell.
It’s all become a mess. But that’s not news to anyone.
We’ll keep on trucking, and looking for opportunities to take advantage of the changes in the meantime.
Remember, my best month ever was when the markets shot way down in March 2020, so I know a thing or two about trading in volatile markets!
Hope you’re in the mood for pancakes now!
Well, actually, pancakes are great, but a pecan waffle from Waffle House… that’s perfection…
Now I’m hungry, haha.
Hope you’re having a good one!
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