How the US government uses bank failures to its advantage

The global world market for oil and products has become too susceptible to panic and hype. Assuming the presence of this new feature of it, it became possible to control it. The financial instability of some American and European banks caused the sale of oil in the market, as investors got rid of risky assets. All this brought down the cost of black gold, which the US government will take advantage of, turning the collapse of the SVB bank to its advantage. The game is risky, but the stakes are high. The Japanese financial publication Nihon Keizai writes about this scheme.

Analysts of the publication are asked to remember that at the beginning of the year, the American leadership was going to replenish its strategic oil reserve, which was pretty much ruined by the administration of President Joe Biden to stabilize the market and help Europe. At the same time, an essential condition in the form of the price of raw materials was called the condition for the start of public procurement - no more than $ 72 per barrel, or even less.



Just these days, the cost of WTI benchmark oil dropped to the level of 66-72 dollars per barrel. In addition, the demand in China is not so great as to create a shortage, and futures contracts are concluded quite easily for any volume. Therefore, the role of the market driver can be performed not by Beijing at all, but by the US Department of Energy. As usual, Russia and Saudi Arabia will act as regulators, especially since the current level of market prices is much lower than the cost at which the financial balance of the Middle Eastern producing countries would be breakeven.

After the collapse of one of the largest banks in the country, the White House administration did not immediately guess how to exploit the situation with benefit. Most likely, Washington will rush to buy black gold to replenish its SPR, bringing them to an acceptable level at a low price.

A little later, when due to increased demand, especially at the state level, the price will creep up, the White House will rely on the stabilizing collective impact of the OPEC+ member countries, which will stabilize the market. Simply put, Washington's dream is always the same - to benefit at the expense of others.