Energy Report: Fire Hazzard

Iran keeps having problems with fires! Perhaps the U.S. should send Smokey Bear over to Iran because it appears they have major issues preventing fires and if these fires continue to break out it will hit us all in the wallet. Not only did a fire break out and sink the 207-meter (679-foot) Kharg, Iran’s largest warship, a fire continues to rage at one of its largest state-owned refinery and chemical company the Tondgooyan Petrochemical Co., Now reports of an oil pipeline fire on the Boroumil pipeline, and this is just the latest in a string of fires.

Pump Jack, Oilfield, Oil, Fuel, Industry, Petroleum

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Last month Iran also had a massive fire at a chemical factory in the Movaledan chemical factory and a fire at Republic's only functioning nuclear power plant. Last year it was reported that at least seven ships have reportedly caught fire at Iran's Bushehr seaport and before that, there was other fire on ships and major military installations. Let's face it! I think Iran needs to ban smoking in these places. 

Now Iran says they are investigating the fire but it is clear that either Iran is just negligent or that Iran is being attacked in what we all should know is again ongoing ‘shadow war” that at some point may come out of the shadows and be another major upside risk to oil prices and the availability of supply.

This war in the shadows could be with Israel or it could have some support from the U.S. but the market had better start coming to grips with this risk especially when it comes to oil. The recent sharp increase in oil prices by surprise because they bought into the lower for longer augments and the so by the false prediction that global oil demand may have peaked during the Covid 19 crisis. They falsely believed that the Biden Administrations' canceling of the Keystone Pipelines and drilling moratoriums on Federal lands would have no impact on supply or price. Many businesses that believed that are sadly know paying the price especially if they failed to take price protection. 

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