SHORT TAKES ON THE DRIFTING WRECKAGE – OVERNIGHT:

THIS IS NOT GOOD – FROM FOX BUSINESS:   Global crude prices surged to multiyear highs on Monday after OPEC stood firm in keeping production at current levels.   NYMEX crude closed up 2.29% to $77.62 per barrel, the highest level since November 2014.   Brent crude, the global benchmark, jumped 2.50% to $81.26 — the highest since October 2018.  Gas prices continue to climb with the latest average hitting $3.20 per gallon, as tracked by AAA.   In a statement, OPEC and non-OPEC participating countries "reconfirmed the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of November 2021, as per the attached schedule."  Edward Moya, senior market analyst for the Americas, warned prices could go even higher.   "OPEC+ is slowly turning into the villain for the global economic recovery.  Higher oil prices are coming and the energy traders could easily see $90 oil on any surprise disruption to output, a colder autumn, or the unleashing of pent-up travel demand if COVID cases continue to fall," he said in a research note.   So Team Biden will go into the 2022 elections with higher gas prices.  Why do I think the American people will send them a message? 

October 4, 2021