Market analyst and oil trader Phil Flynn stopped by “Special Report with Bret Baier” on Tuesday to discuss how America’s enemies are using “Bidenomics” to their advantage.
Host Bret Baier asked Flynn his opinion on how relations with Russia and Saudi Arabia will affect the oil markets in the long-term. Flynn said that America’s tensions with these countries will result in “much higher prices” in both the “short-term and the long-term.” (RELATED: ‘It’s Not Working’: Joe Kernen Pours Cold Water On ‘Bidenomics’ To Biden Economic Adviser Jared Bernstein’s Face)
“They’re sending a message to the Biden administration that they’re in control and that you better not mess with them anymore, because they’re going to reduce supply.”
Flynn claimed that America is at a “critical time” in which the amount of oil supply has plummeted in the past few months. He pointed out that America’s oil supply has fallen over “30 million barrels just since July,” and that it is expected to “tighten even more with this cut.”
Baier pointed out that crude oil prices have been on a consistent and “steady rise” since June, and that consumers are certainly “feeling it.”
Flynn agreed that consumers could certainly feel the impact of the oil price rise. He also said that the release from the strategic petroleum reserve “gave the market this false sense of confidence” that the global oil market was doing fine. He said that this artificially lowered prices and ultimately discouraged investment, causing oil production to plateau when it should be rising to match the demand.
“And now Saudi Arabia and Russia are taking advantage of this, trying to stick it to the United States by cutting production and there’s not anything that we can do about it,” Flynn said.