Suez Canal blockage putting squeeze on oil prices
Now I am a suspicious person by trade - I do not subscribe to many conspiracy theories preferring a dubious fact as opposed to mere fact when a good story presents itself. This brings us neatly to the tanker currently wedged in the Suez Canal March 2021.
Firstly some facts
- Of the 39.2 million barrels per day (bpd) of crude oil imported by seaborne methods in 2020, 1.74 million bpd went through the Suez Canal, according to data intelligence firm Kpler.
- Almost 59 million barrels per day of crude oil and petroleum products were transported on maritime routes in 2015, representing 61% of the world total, according to the U.S. Energy Information Administration.
- The 200-mile long SUMED Pipeline transports crude oil northbound throughEgypt from the Red Sea to the Mediterranean Sea.
- UK fuel duty is currently 57.95 pence per litre for petrol and diesel.
- The UK government lost over £2.4 BILLION in tax revenue due to the Corona Virus in 2020 (that's just the UK - forget Europe too).
The 400-metre (1,300-foot) long, 200,000-tonne MV Ever Given, from the class of so-called "mega-ships", veers off course in the canal while a gale-force dust storm hits Egypt's Sinai Desert and much of the Middle East. Not that this area EVER gets windy you understand?
Ship operator Evergreen Marine Corp of Taiwan says the vessel - which was en route from Yantian, China to the Dutch port of Rotterdam - "ran aground after a suspected gust of wind hit it".
But the head of the Suez Canal Authority (SCA), Osama Rabie, tells reporters Saturday the accident may have been due to "technical or human errors", rather than 40-knot winds.
The blockage of the global trade chokepoint hits world oil markets, as traders anticipate delays in deliveries.
So how do you get that money back?
Well, you can make the fuel we need a premium and then simply block the main artery. Currently (March 29th 2021) there are over 300 ships in the log jam waiting to come through the Suez Canal. Out of the 300 vessels currently gridlocked there's some 500,000 million tonne of oil backed up.
"As the prospect of the blockage of the Suez Canal turning into the longest-ever accidental closure of this vital trade passage looms large, the resultant impact on crude and tanker rates could progressively show up in the form of higher crude prices. This could eventually trickle down in retail price terms."
The present cost of the mess is thought to be between $6 to $10 BILLION per WEEK!
Our suspects are
- The Russians. Not because they've much to do with it but let's face it, they probably have something to do with it right?
- The Chinese. Always look shifty and are probably the instigators of the Corona Virus.
- The government. Simply because they cannot be trusted.
- The Egyptians. One of the oldest civilisations on Earth still have so many unfinished buildings?
- The Saudis: Let's face it would you trust them? Plus - their oil is the likely cargo of those stuck ships which in turn will drive their profit up when the blockage is cleared.
Since the start of the pandemic the country is simply not driving around as much (aside from the Halford's Hero Exmouth Seafront Racing Brigade and their plastic fantastic wide wheeled 1.1 Corsas). This means we've not been buying fuel and that dear readers is a loss to the UK government of some £2.4 Billion.
Now, stealth taxes are a great way for the government to claw back money. They do this in some highly creative ways so that you and I are totally unaware they are doing it.
Most of us need that fuel and the government need the cash. That's fair to say - Pandemics don't come cheaply! So what happens if you squeeze the jugular supplying that much needed oil to the UK? Well two things - firstly supply and demand. The UK suck out some 1.7 million barrels per day but we need so much more! It rather makes you wonder when the planet will simply be sucked dry doesn't it?
All that oil is makes up for a fraction of the oil we use per day... check this out:
"The United Kingdom consumes 1,583,896 barrels per day (B/d) of oil as of the year 2016. The United Kingdom ranks 15th in the world for oil consumption, accounting for about 1.6% of the world's total consumption of 97,103,871 barrels per day."
Oil is worth BILLIONS in whatever currency you choose so would it not be an idea to make it a premium so that those that need to fuel for their cars, lorries, ships and Amazon deliveries must pay more to get it because it is in short supply?
There have been many dystopian movies made on the subject or around it - Kevin Coster's Water World for example had the "Smokers" living on an oil tanker - one that possibly got stuck in the Suez log jam?
The world's economic lifeblood is CRUDE OIL much to Greta Thunberg's disgust but then when you look at the big picture - she has a very good point - what will our constant need for oil eventually do to us?
So you have your Pandemic possibly started by the Chinese. You have your cash strapped government needing to claw back the cash they gave us for sitting on our arses. You have one of the most profitable tax cash cows starved because, well, we weren't driving as much.
The great idea could be - let's jam the Suez Canal and put a premium on fuel to get the tax back we've lost.
Who benefits: firstly the Saudi's - those Lamborghinis cost a bomb to run and luxury flats in London don't come cheap not to mention the 300 wives they maintain all be it in squalor. The UK/Arab deals are well known and the fact that even the monarchy remain great mates with a country that publicly flogs women for leaving their abusive husbands shows how entwined we are with the Saudi's.
The Chinese stand to benefit because all that plastic crap is jammed up and as such it will inevitably drive up the cost of Christmas Crackers.
The Russian stand to benefit because let's face it they'll have a big red hand in it somewhere along the line and although we do get some oil from them via the Siberian pipelines we could get more if we cannot get it through the Suez right?
The Egyptians - now these guys love a bargain and anything that's free. Aside which it's likely that the banks of the Suez are owned coincidently by "my brother - I can get you great discount". With the Suez being more jammed up than an egg bound dog there's money to be made and the Egyptians won't pass the opportunity to make a buck. There'll be tents selling souvenirs, genuine Suez jam papyruses, Suez Jam tee shirt bazars not mention the canal camel safaris.
The GOVERNMENT - be honest you were waiting for this...
Our government is a whizz at stealth taxing and my money is on them arranging the jam. Pop a squeeze on the oil, add 50p to the pump price and soon they'll be rolling in cash once again and who could possibly forget the biggest Conservative campaign donations came from the three largest oil companies in Europe and they will all want to see their profits continue to grow.
Now combine these facts together to make your conspiracy stew and it all starts adding up. There was no freak wind, no odd tides, no mistake, no drunk driver just purely and simply greed that led to the Suez Canal blockage of 2021.
I may well be wrong but it's looking very suspect don't you think?
Don't forget that the facts should NEVER stand in the way of a good story! Want more? Please feel free to subscribe to my blog if you dare and get the latest news direct to your email!