Good morning, here's what the Oilman has for you today:

• Let the Oil Hoarding Begin!

• UK To Splurge $29 Bln on Carbon Capture

• Tweet of the Day

Let the Oil Hoarding Begin!

Demand for tankers is surging following Iran’s attacks on Israel last week.

Traders the world over are switching to hoarding mode.

And just a week ago there was talk about oil at $50.

The market that turns on a dime

A week ago, oil prices were down.

Short bets were at a record high.

This week… well, let’s just say bearish speculators will have some short covering to do.

Actual traders, meanwhile, are stocking up.

The war in the Middle East may escalate further.

It may de-escalate, hard as it is to believe this right now.

But oil traders are buying oil and putting it on tankers.

Just in case.

But yes, we can definitely give up oil and replace it with wind and solar.

If anyone needed a stark reminder of our energy reality, they just got it.

Tanker owners, meanwhile, are enjoying their higher rates.

They’re also enjoying their higher stock valuations.

And it all happened so suddenly.

While everyone was looking at oil demand in China.

Winter is coming

The increase in demand for tankers has several reasons.

One of these is usual: a pickup in seasonal demand ahead of winter.

The other is the Middle East escalation surprise.

The coincidence does not bode well for supply security.

It, therefore, does not bode well for prices.

And that bodes the opposite of well for the Democrats.

There’s just a month left before the election.

It’s the worst possible time for a price spike at the pump.

And that’s the good news.

They have all the motivation to do their best to de-escalate in the Middle East.

UK To Splurge $29 Bln on Carbon Capture

There are no limits to what the UK government would do for net zero.

Now, it’s promised 22 billion pounds in funding for three carbon capture projects.

That comes in at almost $30 billion.

And it’s pointless.

A minor emitter that feels important

The UK is a minor emitter of CO2.

Actually, it is a minuscule emitter.

Its share in global emissions is… below 1%.

And its share in global cumulative emissions? Less than 5%.

But the country’s new and ambitious governments wants to emit even less.

Preferably zero.

So it’s promising it would give 22 billion pounds for three CCS facilities.

They will trap CO2 from power generation and hydrogen production.

Plans are to have them operational in about four years.

The money will be released over 25 years.

The question of where this money will come from is interesting.

The government says it would be a split between budget cash and… electricity bills.

We’re talking about the country with some of the most expensive electricity already.

But sure, Brits could bear more of the cost of the transition.

It’s for their own good after all.

No holds barred for the transition dream

The UK is now locked in a tight race with Germany.

It’s a race to the bottom.

Which country will destroy its economy first?

It’s hard to say.

They’re both eager to bankrupt themselves by subsidizing all sorts of hype.

The UK just got a step ahead with its CCS plan.

Tweet of the Day

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