I like Zero Hedge, but this article on oil prices isn’t very good. One of President Trump’s main goals is to lower prices for businesses and consumers, so this is great news. It was bad news when prices surged as soon as Biden was installed, because one of his main goals was to cripple the U.S. economy, and sabotage the crude oil, natural gas, and coal industries to do so. It was a disaster all around the world, for everyone, except countries like Iran and Russia, which were able to finance wars and terrorism by meeting the market demands that were still there.

Here’s the article:

WTI Extends Losses After Biggest Crude Inventory Build In A Year

Oil prices are leaking lower this morning after surging yesterday on Trump’s ‘maximum pressure’ plan for Iran as traders weigh the effect of a US-China trade war on demand.

‘Trump tariff chaos and trade war is no good for global growth and oil demand growth,’ said Bjarne Schieldrop, chief commodities analyst at SEB AB. ‘But supply disruptions, as so often before, can then rapidly and suddenly turn everything around.’

API reported yuuge builds for Crude and gasoline overnight but a large draw for Distillates (cold weather?)...

API

• Crude +5.025mm

• Cushing +110k

• Gasoline +5.4mm

• Distillates -7.00mm

DOE

• Crude +8.64mm - biggest build since Feb 2024

• Cushing -34k

• Gasoline +2.23m - 12th straight weekly build

• Distillates -5.47mm - biggest draw since March 2021

Some massive swings in the inventory data last week with a huge crude build and large distillates draw…

The article said crude oil prices “surged” on Tuesday when Trump announced that he would again put maximum pressure on Iran. It would normally be the case that prices would surge when you cut out a significant supplier, but this wasn’t much of a surge, and it didn’t continue; my guess is it’s because of Trump’s overall energy policy. On February 3rd, the price of crude closed at $72.30 and on February 4th it closed at $72.42. A 12 cent move is insignificant. Why would anyone call it a surge? My guess is the trend is down because Trump is all in on getting more oil on the market.

The price of crude hit $80.44 on January 14th, Biden’s last week in office. Today it is $71.22, or down over 11%. That move will eventually flow through the economy and everyone will be helped, especially the poor and middle classes, and small businesses. The over 6,000 products derived from crude will also benefit from lower input costs.

Then the article quotes some trader who says: “Trump tariff chaos and trade war is no good for global growth and oil demand growth”.

I would ask, where is this chaos? Has anyone actually seen consumers pull back? Business optimism has increased, not decreased, since Trump was elected. A real “surging” trend. After the U.S. and the world suffered through high inflation for four years because of Biden's policies, everyone should cheer for the prospect of lower energy prices. It is a shame that this article was written as if lower energy prices were a negative.

The media and other Democrats should be especially ebullient since they hate oil companies and profit, so why aren’t they cheering this good news? Because they hate Trump more than they care about the poor and middle classes. They won’t give him credit for anything, and they certainly don’t want his policies to work. It would show the public, especially the voters, who was really responsible for the higher prices, and who can deliver lower prices.

The media and other Democrats always claim that Trump is in the pocket of oil companies, but he is the one who keeps oil prices low. He clearly bases his policies on what he perceives is best for America and all Americans, no matter what race they are and no matter their political loyalties.

Summary: The media cares more about power and big government than anything else.

Image: Free image, Pixabay license.