- Iranian Crisis Could Send Oil To $100: “Iranian Crisis Could Send Oil To $100 The protests in Iran were the main driver of the bullish sentiment in the oil market.”
- Comment: US and China hold secret talks over the North Korean crisis: “”We have had conversations that if something happened [on the Korean Peninsula] and we had to go across a line, we have given the Chinese assurances we would go back and retreat back to the south of the 38th parallel [when conditions permit],” Tillerson said in a speech in Washington.”
New Pipeline Doubles Russian Oil Supply To China: “New Pipeline Doubles Russian Oil Supply To China An extension of the East Siberia-Pacific Ocean oil pipeline between Russia and China started operating on January 1, doubling the export volumes from 15 to 30 million tons annually, or almost 220 million barrels.”
- Israel passes law to prevent ceding control of Jerusalem: “Israel’s parliament passed a law on Tuesday that bars ceding any part of Jerusalem to a foreign power without the approval of a supermajority of lawmakers, a move that threatens to further hinder prospects of peace between Israel and the Palestinians.”
- U.S. threatens to withhold aid cash to Palestinians: “Trump said that Washington gives Palestinians “HUNDRED OF MILLIONS OF DOLLARS a year and get no appreciation or respect. They don’t even want to negotiate a long overdue peace treaty with Israel … with the Palestinians no longer willing to talk peace, why should we make any of these massive future payments to them?””
A rough day for the United States, possibly a rough year for the United States and its allies. A source of oil for China increasing its energy security although far from enough to satisfy fall of China’s current and future energy needs. An increase in oil price from Iranian crisis helping the recovery of the Russian economy from the Ukrainian crisis. President Donald Trump despite the criticism from UN nations in favor of Israel’s right wings. In summary, much less stability in the middle east means higher global oil prices. A bad deal for China, South Korea, Japan and Europe. A good deal for Russia.