Click here for the PDF: The Weekly Beacon โ€“ March 3 2023

We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.

Feel free to send in your pictures of lighthouses to be featured in our weekly commentary.

This weeks issue: Energy demand, Renewable energy, Solar energy, Natural gas prices, Worlds richest list, Elon Musk, Tesla, LVMH, Bernard Arnault, U.S. Strategic Reserves, Government regulation, Germany energy mix, German energy goals, Europe and the U.S., Global trade, Russian energy, Sportsbook stocks, Draftkings stock, Super Bowl, march Madness, Sports wagering, Earnings, Fixed income investments, U.S. Treasury Bills, GM stock, Tesla deal, Lithium, Cobalt, Rare Earth metals.

 

 

Drain the reserves

Another week and another draw in the U.S. Strategic Petroleum Reserves:

The U.S. government has been draining its reserves for months to suppress high oil prices. Despite that, prices remain above $75/bb. The Biden Administration have drained the reserves to their lowest point since 1983.

The Biden Administration announced further sales from its reserves over the last month despite a pledge at the end of 2022 to refill some of the lost reserves:

It seems even the government is realizing the structural deficits across the oil market exist and are not getting any better. Western governments have begged some of their own companies, and foreign countries to increase oil production over the last few months. Those same governments are the ones to blame when it comes to supply deficits due to their heavy regulation and climate goals that have negatively impacted the energy industry over the last 10+ years.