The Everything Shortage: Why Global Supply Chains Are Breaking and What It Means for Energy Markets

Jack Pandelli, The Merchant’s News Substack Author and commodities trader, stops by.

The world is short of nearly everything. Shipping routes are under attack, refineries are maxed out, and energy policies have backfired. In this episode, commodities expert Jack Prandelli breaks down the "everything shortage"—the interconnected crises in oil, gas, food, and critical minerals that are reshaping geopolitics and creating the next commodity super-cycle. Discover why diesel is more valuable than crude oil, how drone warfare changed energy markets forever, and where smart investors should be looking.

I highly recommend subscribing to The Merchant's News Substack.https://themerchantsnews.substack.com/

1. Global Supply Chain Disruptions & Shipping CrisesThe podcast opens with a comprehensive discussion of how critical shipping routes and infrastructure are breaking down simultaneously. Key choke points under threat include:

Strait of Hormuz – targeted by dronesSuez Canal – Saudi vessels avoiding drone attacksBlack Sea – ports and vessels targeted by dronesRhine River – water levels critically low due to heat, disrupting European logisticsPanama Canal – reduced traffic due to El Niño and low water levelsThis creates what Jack calls an "everything shortage" affecting global commerce.

2. Oil Market Dynamics & Refinery BottlenecksWhile crude oil prices remain below $100/barrel, the real issue is in refined products. The podcast highlights:

Record-breaking diesel crack spreads (refining margins)Diesel prices now higher than crude oil pricesGlobal refinery shortage (16 Russian refineries damaged, others under maintenance)This creates inflation pressure on the broader economy3. Energy Transition Policy FailuresJack criticizes aggressive ESG and net-zero policies in Western countries (Europe, US, UK) for:

Pushing energy transition too fast without viable alternativesCreating energy cost disparities (California diesel at $7.80 vs. Texas at $5.05)Leaving economies still dependent on fossil fuels while discouraging investmentEurope's particular vulnerability without Russian gas supplies4. Geopolitical Oil & Gas CompetitionThe discussion covers strategic energy moves:

Saudi Arabia successfully pivoting to sell oil to China via alternative routesIran losing market share to Saudi competitionQatar damaged (LNG facility attacked in February) and now a loser in the energy gameUAE protecting infrastructure with protective cages against drone attacksIraq emerging as a potential w