Posted on 04/24/2018 7:42:20 AM PDT by afraidfortherepublic
THE United States is flooding the European markets with record amounts crude oil as US producers seize on Russia and the Organisation of the Petroleum Exporting Countries (OPEC) pact to cut output resulting in soaring oil prices.
US crude oil is seen as the cheaper option as the OPEC and Russia pact begins to bite after agreeing jointly to oil output jointly by 1.8million barrels per day (bpd) help rebalance the market and to help elevate the benchmark Brent prices.
Now, the relatively high prices brought about by that pact, coupled with surging US output, are making it harder to sell Russian, Nigerian and other oil grades in Europe, traders said.
A trader with a Mediterranean refiner, who regularly buys Russian and Caspian Sea crude and has recently started purchasing US oil. He said: “US oil is on offer everywhere. It puts local grades under a lot of pressure.”
In April, US supplies to Europe are set to reach an all-time high of roughly 550,000 bpd (around 2.2 million tonnes), according to the Thomson Reuters Eikon trade flows monitor.
(Excerpt) Read more at express.co.uk ...
Respectful disagreement. This is the mere conduct of an economic-based foreign policy with America First as its guiding principle. Revenge is just a bonus. (H/T Sundance at Conservative Treehouse)
Trump’s promises regarding oil and natural gas output during the campaign, combined with his promise to ramp up our defense spending and readiness, should have made it obvious to any thinking individual that Trump was not in Russia’s pocket in any way - quite the opposite, actually. Frankly, the fact that Hillary had pretty much the opposite position on both of these issues should have likewise proven that she was in Russia’s pocket, even if unwittingly.
The simple fact is that Russia’s economy has not changed much since that of the old Soviet Union in the 1980s. They are heavily dependent upon foreign currency earnings from the sale of oil and natural gas prop up their economy, to the tune of about two-thirds of their foreign currency earnings. Getting the price of oil down and ramping up defence spending where the twin pillars of Reagan’s and Bill Casey’s plan to destroy the Soviet Union by making its economy collapse. Putin is keenly aware of what happened in the 1980s, and is just as keenly aware that Trump was basically planning to do the same thing. Add to that the fact that Russia had the goods on Hillary with the whole Uranium One deal, and you have the truth being 180° different from the narrative of the Democrat party and the media (but I repeat myself).
FYI, it is my belief that Hillary was not cooperating with the Russians with regard to her anti-fossil fuels position. That had much more to do with both kowtowing to the radical environmentalists, and (much more) with keeping the price of oil high so that her Middle Eastern benefactors would keep the “contributions” flowing to the Clinton Foundation during her presidency. The simple fact is that Hillary Clinton is for Hillary Clinton, and really couldn’t give a damn about anybody else or any ideology. Yes, she is a radical leftist, but that has much more to do with making it easy for her to obtain money and power than any sincere belief system.
So..... is that why prices have risen steadily for the past six weeks (give or take) at the pump?
The market for crude oil is worldwide. Oil sells at the highest price. That’s capitalism.
The only way to keep oil here is to have government force private companies to sell here. We don’t want that heavy hand on our businesses. Government can subsidize payments to petro companies to keep it here, and we don’t want that either.
Russia and OPEC are using outdated tactics in an attempt to maximize profits with the assumptio of leverage they no longer have with USA and other oil production.
Barring exteme circumstances, it will work itself out in short order. It always has.
And, screw billy nelson and start drilling off FL. All those areas belong to the people so let’s put them to use. The Deep Water Horizon was a horrible anomaly. Safety is still pretty damn good with offshore rigs.
That’s nice. Meanwhile the price of a gallon of gas has gone up in my neighborhood. A few cents shy of $3/gal now.
Commodities trading, of which oil may be the most important, is now international in nature. If oil can be sold at a greater profit in Europe than in the United States, it will flow there. Money is like water, it follows the path of least resistance, and the oil will follow the money.
What I like least about this is it makes us an extractive economy. Real wealth comes from mining and manufacturing, but between the two, manufacturing creates far more wealth than simple resource extraction.
Yes, we need to produce oil, but we need it to fuel an industrial economy. There are very few countries in the world who can have self-sufficiency in food and energy, and also have an advanced industrial economy. We are one of them.
Where are you? My pump says $2.79 - hardly a record high.
Why not flood the U.S. to deter the ever-increasing price here?
...
It’s temporary. Giving OPEC and Russia a bloody nose has long term benefits.
Yeah, thats what the dirtbag GOP globalists said to allow export of oil. Gee, look how much our oil price at the pump has gone down!
The Obama Economy finally kicking into gear. Snort!
Why don't you blame the real culprit, gas taxes.
Here in CA, too. One station all grades are over $4 already! Of course, that includes Moonbeam’s recent huge gas tax increase.
How do you get that discount? We get $0.20 at Chevron with our Safeway code, but only if we buy enough groceries at Safeway.
Yes exporting a good you don’t produce enough of domestically... what a win (rolling eyes).
Gas is up and going to continue to domestically.
Sorry folks, but this one isn’t a win.
Its not.. the Republicans hosed the individual to pad some big wigs pockets.
Exporting a resource we don’t have enough of domestically is NOT a win...
Ugh.... 2.79.
Suppose I should be thankful we’re at 2.45 in Texas.
Seeing it steadily increasing though gives me some concern.
I believe the taxes have remained unchanged, but will double check to be certain.
Well, we are going into summer so the prices will always rise. I remember when it was 5 bucks so I’m happy with $2.79.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.