It looks like the democrats are the threat to democracy as the candidate that received the most votes in their primary is being forced to step down. Biden, the man who got the most votes in history in the last election and swept his party‘s nomination voting, is out of it. We did not hear that directly from him but in a press release he said among other things that, “while it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down and to focus solely on fulfilling my duties as President for the remainder of my term.”

Many people believe the reason why the president is stepping down is because he’s losing his mental faculties. Yet that raises questions as many Americans wonder why the democratic party and many members of the press covered for him when it was obvious he was in decline at time when geopolitical risks are rising. That is especially true for risk and policies that impact energy.

The Biden administration’s attempt to get back into the ill-fated Iranian nuclear deal is now looking like another major mistake. Secretary of State Blinken is warning that Iran now is now just 1 or 2 weeks from breakout capacity to produce nuclear material for a weapon. This comes after a policy approval that appeased the Iranian regime allowing them to sell more oil which hit near a six year high. That brought them billions of dollars.

The administration still failed get into the type of agreement that Joe Biden wanted while they argue that it’s all Trumps fault for pulling out of the JOCPA agreement in the first place . A deal that all expets knew would still allow Iran to get a nuclear weapon and also had allowed them to acquire ballistic missiles.

The reality is that after Trump pulled out of the deal that was a bad deal, he then put pressure on Iran and their oil revenue had fallen to a trickle. Now after the Biden appeasement, they rebuilt their oil and gas industry. They were able to send billions of dollars to support Hamas, the Houthi rebels and Hezbollah. Because of that the world has become a more dangerous place.

Now activity has raised the risk of a wider conflict after Israel was attacked and then struck back. The AP reported that, “The Israeli military said it intercepted a missile fired from Yemen early Sunday, hours after Israeli warplanes struck several Houthi targets in the Arabian Peninsula country. The Israeli airstrikes — in response to a deadly Houthi drone strike on Tel Aviv — were the first time Israel is known to have responded to repeated Houthi attacks throughout its nine-month war against Hamas. The burst of violence between the distant enemies has threatened to open a new front as Israel battles a series of Iranian proxies across the region.

Bloomberg reports that Rosneft PJSC’s major Tuapse refinery in southern Russia caught fire after a Ukrainian drone attack early Monday, regional authorities said.

Biden was the most anti fossil fuel and anti-US energy president in history. A president that called the US energy industry ‘price gougers and war profiteers’ and then tried to take credit for record breaking oil production. Of course it was the US energy industry that became more efficient and most of those innovations came before Biden.

Reuters reported, “U.S. energy firms this week added oil and natural gas rigs for the second time in three weeks, energy services firm Baker Hughes (BKR.O), said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, rose by two to 586 in the week to July 19, its highest since late June. Despite this week’s rig increase, Baker Hughes said the total count was still down 83 rigs, or 12%, below this time last year.

The rig count that is sharply lower than it was a year ago it’s a signal that U.S. oil production may be peaking and it’s going to be a challenge for the next president to keep that production going in the right direction.

And if Vice President Kamala Harris is the standard bearer for the democrat party, the outlook may even be bleaker for US energy and innovation. Vice President Harris has been open coming out against fracking, she has made a career suing US oil and gas companies. She has also been very supportive of the policies that have appeased dirty oil producers like Iran and Venezuela. If you did not like Biden’ s energy policy, beware of Harris because she is even more radical

China’s economy may be weak, but they are breaking records for air travel. China flight stats reported a record breaking 3,024,798 flights. That is up 11.98% from a year ago and a new record high.

This comes as Bloomberg reported, “An uptick in purchases of Middle Eastern oil by Chinese refiners is helping to support the physical crude market, even as deep-seated concerns remain about the trajectory of the nation’s demand.” They say that companies including Unipec and PetroChina Co. have boosted spot purchases of September-loading Middle Eastern crude to arrive in September-October, according to traders and analysts. That comes as state refiners ramp up following maintenance, a new private refiner prepares to start operations, and more buying is expected for the nation’s strategic reserves.

We also must keep an eye on Canada and oil production shut-ins. Reuters reports, “Wildfires raging through the northern part of Canada’s Alberta have forced evacuations of three communities, a provincial body said on Saturday, as the oil-rich province continues to fight five different ‘wildfires of note’ in separate areas. Wildfires of note is often considered to be of significant threat to public safety, communities, and critical infrastructure. The evacuation orders have been issued across John D’Or, Fox Lake and Garden River communities in northern Alberta, covering close to 62,000 hectares and comprising 5,000 inhabitants.

The oil market today has been the flip flopping from positive to negative over the last 24 hours since the Joe Biden news. Our expectations are that we should find a bottom here as the global market is tightening. In the short term, we’re starting to see some hesitation to move higher. Until we get a clearer direction on which way the country is going to go, the market is looking at a Trump presidency as a potential negative to oil prices as he will allow increased oil and gas production.

Natural gas prices are holding in as demand continues to be strong.

Stay tuned for all the history making developments by staying tuned to the Fox Business Network.

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