Posted on 03/06/2022 6:21:28 PM PST by Enlightened1
U.S. crude oil surged more than 8% in early trading on Sunday evening as the market continued to react to supply disruptions stemming from Russia’s ongoing invasion of Ukraine and the possibility of a ban on Russian oil and natural gas.
West Texas Intermediate crude futures, the U.S. oil benchmark, traded 8% higher to above $125 a barrel, the highest since July 2008. At one point the price rose to $130.50 Sunday evening before retreating.
The international benchmark, Brent crude, traded 9% higher to $128.60, also the highest price seen since 2008. Brent hit a high of $139.13 at one point overnight.
“Oil is rising on the prospect for a full embargo of Russian oil and products,” said John Kilduff of Again Capital. “Already high gasoline prices are going to keep going up in a jarring fashion. Prices in some states will be pushing $5 pretty quickly.”
The U.S. and its allies are considering banning Russian oil and natural gas imports, Secretary of State Antony Blinken said in an interview with CNN’s “State of the Union” on Sunday.
“We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil while making sure that there is still an appropriate supply of oil on world markets,” he said. “That’s a very active discussion as we speak.”
While Western sanctions against Russia have so far allowed the country’s energy trade to continue, most buyers are avoiding Russian products already. Sixty-six percent of Russian oil is struggling to find buyers, according to JPMorgan analysis.
(Excerpt) Read more at cnbc.com ...
This statement assumes there’s no idle capacity in the oil industry right now. Dollar to a donut that if Dufus rescinded the EO he passed two hours after taking office on killing the Keystone Pipeline and eased the restrictions on oil leases, the spot price of oil would drop like a stone.
No way that Biden’s propaganda will sway those that are experiencing this first hand. That’s my hope.
Everything is up. Bought only twelve items at the store, spent over $50.00. All of this can be laid at the feet of the stolen elections that put Biden in the WH.
Notice I still don't refer to him as president, I never will!
No doubt they’re right now conjuring the excuse for the recession this is going to cause. Got a sinking feeling it going to be a doozy.
Fracturing (no K) is a step in well completion after the cemented casing has been perforated in the hydrocarbon producing zone.
Not aware of any company that would spend money drilling a well and perforate only.
Biden’s going to try to blame everything on Russia going into the midterms. The gas prices, inflation, food prices, whatever.
At my station (Marysville, CA) it went from $4.11 to $4.79 in two weeks. It will easily be over $5 this time next week...
I simply suggest that 1,000,000 American supporters of real POTUS, Donald J Trump show up at the upcoming Trump Political Rally next Saturday evening being held in Florence, South Carolina!!!
Biden must go...Impeachment now!!!....Ditto for Harris, Pelosi & Schumer...all Democrats that hate America!!! Note....Criminal, Biden & Criminal, Son, Hunter Biden in the pockets of Russia, China, Iran....100%!!!
“This statement assumes there’s no idle capacity in the oil industry right now. Dollar to a donut that if Dufus rescinded the EO he passed two hours after taking office on killing the Keystone Pipeline and eased the restrictions on oil leases, the spot price of oil would drop like a stone.”
While that would be nice, it wouldn’t produce any product for quite some time so the price isn’t likely to change much quickly. We have a shortage of oil/gas. We have a shortage of projects even underway. Many OPEC countries can’t even produce up to their restricted amounts people used to worry about them cheating on and overproducing.
This looks like a blow-off top forming right now, but the drop won’t be massive, supply is short. The current jump is war-fear, not fundamental.
“Drill, baby, drill.”
Why?
To get it shut down again in nine months and lose billions in order to get liberals out of a jam?
It would not drop quickly if the past is an indication, more like 12 to 18 months at a minimum.
“Greenies, they lay low.”
I wonder what their BTU value is. The extremely efficient Germans may find out next winter.
Amen!
Check out Gold.
It’s about 2k.
As my college economics Professor would say: “Prices are sticky downwards.”
“Biden’s going to try to blame everything on Russia going into the midterms. The gas prices, inflation, food prices, whatever.”
I am not seeing any way that a Dem can actually mount any sort of campaign. Biden may have been able to do it from a basement, but that kind of trick will only work once.
No worries, methinks the January 6th committee is working overtime to come up with a way to tie Trump to Putin right now in order to charge him with treason and sedition before the midterms ....
Nikkei down over 3%.
DAX down over 4%.
When Reagan deregulated oil it took about 18 months before that changed the market and caused oil prices to crash from about $50 a barrel to $15, and I believe that will happen again, in the meantime until we get a leader ready to move out of the way we may be screwed for the next 2 to three years.
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