Stating the obvious can bring clarity to topics. While fuel costs impact every industry, in some ways, they may impact manufactured housing even more given the fact that not only production costs have fuel as a cost-driver, but so too does the delivery-transportation-installation costs for HUD Code manufactured homes. Furthermore, virtually every buyer of a manufactured home is impacted by the cost of gasoline. That noted, on 9.5.2022 at 07:43 AM, ZeroHedge said the following about crude oil price’s outlook. “And there it is: the half life of the infamous fist bump proved to be less than two months, with a delegate telling Reuters that OPEC+ has agreed to a 100kb/d reduction in oil output for October.”
Final statement #OOTT #opec pic.twitter.com/ejnWhjUm3Y
— Amena Bakr (@Amena__Bakr) September 5, 2022
OPEC SG HE #HaithamAlGhais, in an address before the G20 Energy Transitions Ministerial Meeting in Bali, highlighted the essential role that steady and stable investment flows play in enhancing energy security and market stability. pic.twitter.com/jiH2PVppL4
— OPEC (@OPECSecretariat) September 2, 2022
He noted that the world today is witnessing in real time the consequences of the chronic underinvestment. More than $12 trillion in investment will be needed across the value chain between now and 2045 to help meet expected growth in oil demand.
— OPEC (@OPECSecretariat) September 2, 2022
Notice that demand for crude oil is expected to continue to rise “between now and 2045.” This is despite the push for so-called “green energy.” Much of Europe, including the U.K. is expected to see a sharp rise in energy costs as Russia has cut delivery of natural gas and fuel to Germany and other countries. As MHProNews reported, a ripple effect of economic harm is resulting from the scuttling of the tentative peace deal between Ukraine and Russia by British and U.S. political leadership.
Crude Oil is not going away. There is no way the world can function without it.
— DWhitney (@DanaWhitney59) September 5, 2022
Gold is oscillating, it will still rebound in the short term, and the trend is down
Silver will still rise and rebound in the short term, with a downward trend
Crude oil remains in an uptrend
U.S. dollar index, up in the short term, but with downward pressure#XAUUSD #GOLD #US pic.twitter.com/Y3kOgJPdwo— Aixi (@Aixi___xauusd) September 5, 2022
The New York Times said that the cut is more a signal for the future than a likely driver for short term cost increases. Time will tell, but there are reasons to believe otherwise.
G7 finance ministers agreed to impose a price cap on #Russianoil aimed at slashing Moscow’s revenue in the #Ukrainewar while avoiding price spikes. #Russia said it would stop selling #oil to countries implementing the policy.https://t.co/884EVzRh9C#oilandgas #OGJ
— Oil & Gas Journal (@OGJOnline) September 2, 2022
Since the G7 oil price cap was announced on Friday, Russia has retaliated cutting gas supply to Germany to zero, and joining forces with Saudi Arabia and others at OPEC+ to reduce global oil production.
I’m going to go to the pub to drink some beer now.
— Javier Blas (@JavierBlas) September 5, 2022
Back to ZeroHedge: “Sources briefed on Saudi’s thinking says Saudi has not yet made a decision to tweak OPEC+ policy, but the energy minister is under pressure to keep prices near USD 100/bbl, FT reported: but the range of complicating factors could make the Kingdom opt for a pause.”
Under the current global energy matrix the primary check on the potential for throttling oil production by the OPEC+ nations is for the U.S., Canada and other producers to increase their output and to complete projects such as the Biden-scuttled Keystone XL Pipeline. Certainly, other energy sources – such as nuclear power or coal fired energy production – are possible mitigating factors too.
Put differently, the Biden White House and other “Build Back Better” policies are to a significant degree behind the expected return to increasing crude oil costs which will translate to higher fuel and transportation costs. Those in turn add to inflationary pressures.
According to the U.S. Energy Information Administration in August 2020 the average price of all formulations of fuel in August 2020 was $2.182. In contrast, in August 2022 that same federal source said that all grades of fuel averaged $3.975. 2.182. When you do the math, that is an 82.17% increase.
PerAMAC.us: “According to industry estimates, the $6.5 billion natural gas tax in Democrats’ Inflation Reduction Act will threaten as many as 100,000 jobs. Democrats also voted against an amendment to the bill that would have opened up more oil and gas leases to boost domestic energy production, juice manufacturing, and bring down costs – in essence doubling down on Biden’s disastrous decision to cancel the Keystone XL Pipeline and end oil and gas leases on federal lands. According to the recently released U.S. Energy and Employment Jobs Report, 29,270 jobs were lost in the fuels sector between 2020 and 2021 alone – a decline that is likely to continue as a result of Democrat policies.”
Supply and demand is a law that is almost as dependable as gravity. Cut the supply, keep the demand even, and prices in a normal market will rise. Update: this article was drafted Monday morning 9.5.2022. Shortly thereafter the extended shutdown by Russia of the Nordstream 1 Pipeline was announced. This is likely to add to the pressure on fuel costs.
If you don’t like the high cost of fuel and other energy costs, when the midterm election time comes, be sure to thank Biden’s Democratic Party colleagues for this dramatic cost of living jump imposed on every American, which harms those with the lowest incomes the most. Vote wisely, because “it is the economy, stupid” that still motivates most voters for or against the ruling party in Washington, D.C. ##
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By L.A. “Tony” Kovach – for MHProNews.com.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
Connect on LinkedIn: http://www.linkedin.com/in/latonykovach
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