America is suffering a “nickel pickle.” As the US Federal government pushes their green energy agenda, Mayor Pete Buttigieg (aka, Transportation Secretary) on Monday said “the American people stand to benefit from having more electric vehicles on the road.” Unfortunately, electric vehicles use nickle in their production and guess who produces the most nickel? Russia.
Nickel futures were up +66.25%.
Unfortunately, Russia is the largest miner of nickel. But Brazil is second.
We are also seeing rising volatility of US stocks (VIX) and bonds (MOVE) as Russia’s invasion of Ukraine continues and crude oil prices soar.
While NYM WTI Crude volatility is up +296%, NYM DUBAI Crude is up +4,626.19%, and NYM JKM (Japan/Korea) natural gas volatilty is up 1,900%.
Now, US oil and gas exploration and drilling rig count has almost doubled under Biden as oil price surge.
We are in an American pickle since Russia is a major supplier of oil and natural gas as well as nickel.