US, Allies Agree To Implement Russian Oil Price Cap Plan
If Russia responds to the attempted price cap by cutting oil production [they already have], experts have warned prices could skyrocket. In the worst-case scenario, analysts at JPMorgan Chase said oil could shoot up to a “stratospheric” $380 per barrel. Oil prices are currently hovering around $100 per barrel.
How do higher oil prices prevent a worldwide recession?! Did the Biden Administration even think this through?! 🤯
Moscow is raking in more revenue than ever with the help of new buyers, new traders and the world’s seemingly insatiable demand for crude
Russia Confounds the West by Recapturing Its Oil Riches
Related:
US Treasury Secretary Janet Yellen has warned that a failure to place a price cap on Russian oil would hurt the global economy.
Yellen discusses Russia oil price cap as Chancellor Nadhim Zahawi visits US
🤡
U.S. Strategic Petroleum Reserve Falls To 35-Year Low
According to the Institute of Energy Research, the SPR is expected to shrink to a 40-year low by the end of October, with inventories then at 358 million barrels, compared to 621 million barrels a year ago.
Related:
US oil exports to China and India jump as American crude heads overseas at a record pace
The only thing that climbed as high as gas prices earlier this year was the disapproval of US President Joe Biden 😂
Biden was wrongly blamed for rising gas prices. But he doesn’t deserve much credit for the drop
The writing is on the wall for Europe in terms of this coming winter – It’s going to get ugly. With natural gas imports from Russia cut by 80% through Nord Stream 1 along with the majority of oil shipments, the EU is going to be scrambling for whatever fuel sources they can find to supply electricity and heating through the coming winter. Two sources that were originally suggested as alternatives were Iran and Venezuela.
Venezuela Stops Oil Shipments To Europe As Alternatives To Russian Energy Dry Up
Related:
Venezuela: Oil Production Declines as Shipments to Europe Suspended
Caracas’ oil operations were affected by mechanical disruptions caused by alleged attacks against oil facilities. On July 16 a natural gas pipeline explosion and a power outage interrupted PDVSA’s supply to its main crude production and export hub, the José Antonio Anzoátegui industrial complex in eastern Venezuela.
…
With the operational disruption depleting Venezuela’s lightest oil grade stocks, Iran recently began to increase its supply of 29.5°API blend, a lighter alternative to Venezuela’s 16°API Merey, in order to boost fuel production and free domestic upgraded blends for exports.
…
However, anonymous sources revealed that Caracas might suspend crude cargoes to Europe while the industry recovers from recent setbacks. PDVSA is reportedly negotiating the terms of the oil-for-debt agreements with Eni and Repsol to receive fuel while still settling long-standing debts owed to the two companies.
Neither Venezuela’s Oil Ministry nor PDVSA has issued statements confirming the alleged halted shipments to Europe or the renegotiation of the swap deals.
Aug 15, 2022 – When a catastrophic fire in Matanzas threatened Cuba’s fuel supply, other countries rushed to help. What did the world’s most powerful country offer Cuba? A phone call. The lack of U.S. support has sparked outrage. And its crushing sanctions have limited Cuba’s ability to respond.
Video via Belly of The Beast Cuba
Related:
While Cuba Deals with Blazing Fire, the U.S. Heartlessly Watches and Waits
House Dems Urge Biden to Provide Assistance to Cuba Amid Fire Disaster
At Least 1 Dead and 121 Injured in Fuel Storage Depot Fire in Matanzas, Cuba
The Cuban president stated in a tweet, “We express deep gratitude to the governments of Mexico, Venezuela, Russia, Nicaragua, Argentina and Chile, which have promptly offered solidarity and material aid in the face of this complex situation. Cuba also appreciates the offer of technical advice from the United States.”
China’s state-run China Petrochemical Group, Sinopec, says it has discovered a massive oilfield in the Tarim Basin, containing 1.7 billion tons of oil reserves.
The discovery is the result of exploration in the Shunbei oil and gas field, said to be one of the deepest commercial fields in the world, in the country’s Xinjiang region.
China Heralds Another Major Oil Discovery
Related:
Chinese Oil Giants Sinopec And PetroChina To Delist From NYSE
The Energy Industry in Xinjiang, China: Potential, Problems, and Solutions
Vast oil deposits discovered in Xinjiang
I’m sure Halliburton would love to get their hands on that oil! Oh wait, that was Iraq!
One of Biden’s top energy aides confirmed Friday the administration won’t extend the oil releases from the Strategic Petroleum Reserve that are scheduled to end this fall.
‘We can’t be an oil supplier’: Biden’s adviser says oil reserve releases must end
Related:
Soaring U.S. Production Can’t Keep LNG Prices In Check
Europe has displaced Asia as the top destination for U.S. LNG, and now receives 65% of total exports.
…
According to a report by the Oil & Gas Journal, 10-year LNG contracts are currently priced at ~75% above 2021’s rates, with tight supplies expected to persist as Europe aims to boost LNG imports.
Russia may be getting more revenue from its fossil fuels now than shortly before its invasion of Ukraine, as global price increases offset the impact of Western efforts to restrict its sales, U.S. energy security envoy Amos Hochstein told lawmakers during a hearing on Thursday.
Russia’s energy revenue higher now than just before Ukraine war, U.S. official says
Part of that, as the above stories illustrate, is just plain ole price gouging. But the big picture is more complicated than that. According to the EIA, in addition to the 61 percent of the price of a gallon of gas that comes from the cost of crude oil, the other 39 percent shakes out as follows: the costs of refinement (14 percent), distribution and marketing (11 percent), and taxes (14 percent).
And refining* looks to be a particular problem right now. The EIA reports that as of January 1, 1982, the U.S. had 301 refineries in operation. That compares to just 129 in operation as of January 1, 2021.
Related:
*Chevron CEO says there may never be another oil refinery built in the U.S.
Previously:
More Oil From U.S. Strategic Petroleum Reserve Heads To Europe
International Energy Agency chief Fatih Birol has warned of a triple energy crisis that could be “much bigger” and longer lasting than the 1970s.
IEA chief warns of summer fuel shortages and a triple energy crisis that will outstrip the oil shocks of the 1970s
Ms. Cat’s Chronicles 
You must be logged in to post a comment.