The national average for gasoline is $3.40 a gallon right now. But according to Dr. Kent Moors, the “oil constriction” he – and he alone – sees coming could slam Americans at any time. And we could have $5 gas by as early as March. Here’s his official warning. As you’ll see, this is also a massive profit opportunity, especially for those who “get in” before the rest of the world even knows what an “oil constriction” is.
December 5, 2011
Power Politics and the Price of Oil
by Dr. Kent Moors
Dear Oil & Energy Investor,
Over the past three days, two events at different ends of the globe have reminded us that political developments can directly influence global oil prices.
First, on December 2, just as I was departing theUnited States, the Senate gave notice that it was prepared to tighten sanctions againstIranover its nuclear program.
And yesterday, the parliamentary elections here inMoscowdidn’t quite provide the results Prime Minister Vladimir Putin and his party had expected.
The catalysts of each event were quite distinct, and each event was not directly the result of energy policy or related costs. However, both events will likely influence the international oil market in similar ways.
Both will likely restrict the flow of oil. And this constriction should be a sign to investors that crude prices will be going up.
The End of an Era in Russia?
As I sit inMoscowthis morning, I can’t help but notice the enormity of what has occurred here. All conversations today center on the final vote tallies from yesterday.
Some are calling this the end of an era; others are saying a new age of power sharing inMoscowis about to begin.
My initial take is less dramatic than either viewpoint. But, I do agree with one widely accepted conclusion about yesterday…
These election results were highly unanticipated.
UnitedRussia, the dominant political party in this unsettled new democracy, is the vehicle of both Putin and President Dmitry Medvedev. The two men plan to swap jobs after next year’s presidential election.
It was to be the guarantor of a parliamentary majority to their liking. After all, the party controls more than 64% of the current Duma (the more powerful lower house of the parliament). The next largest… the long-in-the-tooth Communist Party, with barely 11.5%.
UnitedRussiawas expected to provide a solid legislative base for whatever the Putin-Medvedev tag team wanted to introduce. But there was just one wrinkle in their plans: Russian voters had other ideas and decided not to grant free permission to the ruling party.
In a remarkable sign of popular unrest, United Russia is now hanging on to a bare majority in the vote totals.
Putin’s Next Step
Many now believe Putin’s party will need to forge connections with at least one of the other three parties. This would allow United Russia to generate enough votes to have seats awarded in the Russian style of proportional representation.
The Communist Party now has approximately 20% of the seats sewn up. Just Russia (a newly structured social-democratic coalition) has 13%; and 12% of the vote has gone to the Liberal Democrats (there’s nothing “liberal” here; these are actually the intense nationalists of Vladimir Zhirinovsky, a man who once promised free vodka to everyone in Russia if he were put in power).
The remaining seats are too close to call.
In perspective, Russian power remains in the same hands. However, political leverage will now be spread more broadly.
Real opposition now exists. However, the three parties occupying that side of the chamber have very little in common. So Putin still has little to worry about…
Except for One Major Issue
And it’s the one issue on which all opposition parties and much of United Russia can agree.