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The great oil shortage.

In an in-depth analysis by Brent Sadler, Senior Research Fellow in the Allison Center for National Security at The Heritage Foundation, the precarious state of the U.S. Strategic Petroleum Reserve (SPR) is laid bare, highlighting significant concerns about the nation’s energy security amid escalating global tensions.

“Well the fuel problem is bigger than thought,” Sadler starts on his post on X. His analysis parallels with the jet fuel shortage in Japan, resulting in international airlines postponing plans to expand flights to the Asian nation.

Officials at Narita Airport, Japan’s main gateway for air traffic, have revealed that airlines have shelved plans to add 57 flights to the weekly schedule. The number of canceled or postponed flights could continue to rise. Inbound tourism, now a key source of export income for Japan, has almost doubled over the past year, but airlines are hitting a wall as they cannot secure enough fuel for return flights from Japan. 

You can read more on the matter here.

What’s going on?

• Canada’s Unemployment Rate Rises To 6.4% As Job Market Stalls (theDeepDive)

• U.S. Added 206,000 Jobs in June as Hiring Stays Strong (WSJ)

• Ottawa Wants To Buy Hotels For Refugees As Canadians Struggle With Rent (theDeepDive)

• New PM Starmer pledges to rebuild Britain after years of chaos (Reuters)

• Twilio Confirms Data Breach: Millions of Authy Users’ Phone Numbers Exposed (theDeepDive)

• Gold Rises as Cooling US Employment Data Backs Rate Cuts (Bloomberg)

• 39% In Ontario, BC Want To Leave Province Due To Soaring Housing Cost (theDeepDive)

• Papal arch enemy Archbishop Vigano found guilty of schism and excommunicated (Reuters)

• From Missiles To Malware: Microsoft Bares Defending Ukraine In Cyber War Against Russia (theDeepDive)

• Nvidia to make $12bn from AI chips in China this year despite US controls (FT)

• Trudeau’s Liberals Face Steep Uphill Battle as Conservative Lead Widens (theDeepDive)

What’s the latest?

• Unemployment: Canada saw a loss of 1,400 jobs in June, with the unemployment rate increasing to 6.4 per cent, the highest since January 2022.The proportion of long-term unemployed also grew, with 17.6 per cent of those unemployed in June being jobless for 27 weeks or more.

• Real Estate: Britain's new Prime Minister Keir Starmer, following his party's landslide victory, pledged to use his electoral majority to rebuild the country and restore faith in politics. Starmer emphasized the need for actions over words to heal the nation's lack of trust in politics. Labour won over 410 seats while the Conservatives suffered their worst defeat in history. Former Prime Minister Rishi Sunak acknowledged the loss and expressed his apologies, taking responsibility for the outcome.

• Bezos Selling: Jeff Bezos revealed a plan to sell 25 million additional shares of Amazon.com Inc., valued at US$5 billion, coinciding with the stock hitting a new record. The notice, filed after market close on Tuesday, follows his February sale of shares worth $8.5 billion. This would bring his total sales this year to approximately $13.5 billion.

• Teck Sale: Canada has approved Glencore’s US$6.9 billion purchase of Teck Resources Ltd.’s metallurgical coal business, with stringent conditions to protect local jobs and the environment. The deal involves Glencore acquiring a 77 per cent stake in Elk Valley Resources, while Nippon Steel Corp. and Posco will hold the rest. Teck will use the proceeds to boost copper output by 30 per cent by 2028, focusing on metals for the energy transition.

• Victoria Gold: Elevated cyanide levels have been detected in a creek following an equipment failure and ore slide at Victoria Gold's Eagle Mine in Yukon, which released 300 million liters of cyanide solution. The government reported cyanide levels at 40 parts per billion, exceeding the allowable five parts per billion. Victoria Gold meanwhile hours earlier had indicated no cyanide was detected.

Copper project: once in a lifetime geologist dream

The stock market and stuff

• NIO Sees CFO Resign Effective Immediately For Personal Reasons (theDeepDive)

• Teck Jumps on Buyback, Debt Plan After Coal Sale to Glencore (Bloomberg)

• Teck Resources Granted Approval For US$6.9 Billion Sale Of Steelmaking Coal Unit (theDeepDive)

• Over $170 billion wiped off cryptocurrencies as market tanks on Mt. Gox bitcoin payout fears (CNBC)

• Court Rules DraftKings NFTs Are Securities, Denies Motion To Dismiss (theDeepDive)

In the juniors

• RUA Gold Begins Drill Testing High-Grade Targets At Murray Creek (theDeepDive)

• Skeena Resources Wins Appeal Related To Albino Lake Storage Facility Tailings (theDeepDive)

• Golden Cariboo Enhances Focus On Establishing Geological Model At Quesnelle Gold Property (theDeepDive)

• GoviEx Uranium Plummets as Niger Withdraws Madaouela Mining Rights (theDeepDive)

FULL DISCLOSURE: Hertz Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Hertz Energy. The author has been compensated to cover Hertz Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.