Strange American natural gas explosion!

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Author: Kafka is busy source: outsider’s horizon (id:hooyar_380097485)

On June 9, the price of natural gas in the United States fell sharply, and the price of natural gas in Europe rose sharply because of the explosion of the LNG terminal in Texas free port on June 8.

Texas Freeport is one of the largest liquefied natural gas (LNG) terminals in the United States. The LNG here was originally destined for South Korea and Japan.

However, after the outbreak of the conflict between Russia and Ukraine, Europeans first cut their carotid arteries with a knife, and took the initiative to cut off the gas pipeline with Russia. As a result, the price of natural gas in Europe soared.

In fact, natural gas is difficult to store. After high-pressure liquefaction, the requirements for storage equipment are quite high, and LNG carriers are surprisingly expensive.

So all along, Europeans have been willing to use Russian pipelines for gas supply, which is cheap.

The reason why Europe is so quick in forcing carbon emission reduction is not that Russia has a steady stream of natural gas, which is cheap and low in carbon emissions. With this advantage, Europe has brought up a virgin of environmental protection and wants to cut the leeks of the world.

When Trump came to power, he immediately gave the Paris agreement a big mouth. The old man saw through whether environmental protection was false, and it was the truth to make money with the right to speak. A large number of oil tycoons are standing behind chuanjianguo to give sponsorship fees. Can’t they help others?

However, when it comes to conspiracy, Biden Sr. has to be the one. The Paris Agreement continues, but the Russian Ukrainian conflict was plotted against him. Therefore, Europe had to wield a knife in the palace to swear its determination to fight to the end with Russia.

This is why the price of natural gas in Europe has skyrocketed.

Because Russia needs to buy less natural gas, it has to buy more from other places. Just after the shale gas revolution in the United States, the gas has greatly increased.

When Trump was in power, he forced China to buy a large amount of cheap American natural gas. In order to avoid us playing tricks and not buying, he also attached high conditions for breach of contract.

You really can’t blame trump. He is really kind. How did the negative oil price come about in 2020? Natural gas is more troublesome than crude oil. At least the counterfeiting cost of oil barrels can be low. A large number of natural gas can not be found a buyer, which has to be a big basket.

So think again, is it just that China was forced to sign a long-term contract? Japan and South Korea are garrisoned. If they do not force business, it is not the style of President Chuan.

Therefore, in the end, a large number of LNG ships from Japan, South Korea and China have started re export business, and the natural gas from the United States has stepped up efforts to transport to Europe.

When the supply chain of a commodity may have problems, what will the buyer do?

It must be to increase the storage. Originally, the LNG reserve in Europe was not so large. Now it’s time for good guys. Why not hoard gas?

As a result, more gas in the United States began to be exported. No matter whether the people in the country were short of gas or not, we would sell it to whoever gave us more money.

As a result, natural gas prices in the United States soared.

Originally, Texas is famous for its cheap energy prices. In China, there is a big economic scum who likes to earn RMB. He lives in the Dabie wild and enjoys a good life of high energy consumption all the year round.

However, the energy capitalists in Texas do not put the interests of their own people first, but go to sell valuable natural gas to Europe at a high price, which makes the oil price, natural gas price and electricity price in Texas soar, causing people to complain, and they can no longer live a good life of low price and high energy consumption.

The soaring CPI in the United States can’t come down at all. What should we do?

In fact, with the abundant oil and natural gas production capacity in the United States, as long as the domestic oil and natural gas supply is given priority, the price cannot rise at all.

However, the energy barons benefit a lot from price hikes. A free country cannot allow countries to interfere in energy exports. Moreover, there is a general sense in exporting to Europe.

The U.S. Congress election is coming soon. Biden’s poll data is at an unprecedented low, which can not solve the problem of inflation. Trump will make a comeback every minute, which will cost him his own life.

The explosion in Texas came at a crucial time.

It is said that the LNG explosion in the free port was caused by a screw, and no casualties were caused. Screwing the screw is more gentle than setting fire and installing bombs.

This time, the Freeport will be closed for at least three weeks. Can it be repaired in three weeks? I don’t know. Maybe there is another screw ready to move, or there is such a rotten thing as workers’ strike.

In short, as long as exports are blocked, the energy – rich United States will not be able to raise prices.

As long as energy prices are kept down and Biden cuts the punitive tariffs on imports of Chinese goods, the inflation data of the United States will look better all at once.

So who did the explosion? I don’t know, but it was definitely a timely bombing.

Last week, I wrote an article “the bull market in commodities has peaked”. As a result, the price of crude oil has risen by a few dollars, and some people began to export crazy negative emotions.

Before smashing the plate, you always rush to the top. Do you have to eat the short paragraph to be perfect?

You can open the futures trend to see the outer market of corn.

What is the reason for the recent sharp decline of corn in the United States? Isn’t it a global food shortage? Corn flour is the staple food in many places, but corn is not food?

Look at the chemical fertilizer behind grain production.


See, there is no place to put the fertilizer in Brazil. This is the real world.

Of course, traders will shout that there is a shortage of grain and fertilizer, so as to take the opportunity to raise prices. After a wave of frenzied buying, we found that there was not so much fertilizer in the warehouse.

I have always said that the global supply chain problem and local conflicts have distorted the relationship between supply and demand, which has led to a surge in commodities.

But the relationship between supply and demand is the final factor that determines the price.

This K-line chart shows the Baltic dry bulk index. The general index soars, which means that shipping is tight. Shipowners can take the opportunity to raise prices. If the impact of emergencies is deducted, it actually shows the change in international demand.

The BDI index soared to its peak in October last year. Now, it seems that everyone is in short supply. Is it crazy to rush to buy?

As long as BDI goes on, it means that international demand is declining. Demand determines the price trend of all bulk commodities. Even some traders who want to make money are crazy and use various means to distort the relationship between supply and demand, but the real demand can never deceive people.

There is also a news about chip supply. Do you know if anyone pays attention to it?


See, once the demand comes down, the price of some things will fall by an avalanche.

A little earlier, NVIDIA’s graphics card chips fell sharply, and the sharp decline of virtual currency led to the dismal mining business, which directly turned over the graphics card.


Look, chip OEM companies have used price increases to resolve the danger of future capacity decline.

Many things can be transmitted back. Now the global shipments of consumer electronics are declining, the overall sales of cars are declining, and even American houses can’t be sold. Everything tells you that the false fire of excessive consumption caused by money printing has decreased.

That is to say, the demand is suddenly reduced, and there are people lying flat everywhere. What will the bulk use to increase?

The impact of this wave of money printing is the inflation of the rich and the de facto deflation of the poor.

A poor man can’t get a piece of the feast of the asset foam at all, so Musk’s worth has doubled a dozen times to become the richest man in the world. Does it have anything to do with you and me? On the contrary, it is because musks have too much money and inflated asset prices, which has led to an increase in our cost of living. Sadly, income has not yet increased. This is deflation that ordinary people are forced to meet.

If you look at the tea of miyue, it used to be 30 yuan. Now you can drink it for more than a dozen yuan. Is it inflation or deflation?

The prices of non essential consumer goods for ordinary people are actually falling. Is this caused by inflation?

After selling very well in the United States, Xiyin quickly swept across Europe, because it is cheap. Although the quality is ha ha, isn’t the fashion figure just the style?

Give up the expensive brands in the past and invest in this kind of cheap FMCG. Is this deflation or inflation of the poor?

For necessities, people who just need them are not afraid that you will not buy them. If you do not starve to death, you will immediately return to primitive society without electricity. In the United States, lack of oil is basically equivalent to paralysis. These prices have risen, but life will continue. What should we do? Compress other requirements!

As a result, the stock prices of supermarkets in the United States are plummeting, and the common people have no money to spend. As soon as musks saw it, they immediately announced layoffs, so more people can’t afford to spend because of unemployment.

And then you tell me where the needs come from? So what can support the surge in bulk prices?

Of course, there is nothing wrong with gathering the wool of Europe with one heart and one mind. But Biden is the president of the United States after all. People will certainly get more data than me, which makes it clearer why domestic inflation cannot be held down.

If such high inflation continues, the Federal Reserve’s interest rate hike and contraction are serious. It’s hard to ride a tiger. I’m afraid it will expose the Ponzi scheme that has lasted for half a century in American finance. At that time, no one will be able to save it.

So spend a small amount of money to do big things. One screw will bring down prices in the United States first. If you can’t, just a few more.

In fact, Europe also needs a step. The United States cannot supply oil and gas. So it is hard for the United States to talk about pipeline natural gas with Russia again. European inflation can also come down.

It is time to stop this false inflation.

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