Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas U.S. August 22, 2018. REUTERS/Nick Oxford/File Photo
Reuters: Brent hits new four-year high on Iran supply worries
NEW YORK (Reuters) - Brent crude rose nearly 2 percent after hitting a four-year high on Wednesday as the market focused on upcoming U.S. sanctions on Iran while shrugging off the year’s largest weekly build in U.S. crude stockpiles and reports of higher Saudi Arabian and Russian production.
“Nothing matters between here and Nov. 4,” said Bob Yawger, director of futures at Mizuho in New York, referring to the date when U.S. sanctions take full effect. “You just had the biggest build this year, and the market rallied right through it.”
U.S. crude inventories jumped 8 million barrels last week, quadruple analysts’ expectations and the biggest build since March 2017, the Energy Information Administration said. [EIA/S]
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WNU Editor: Russian President Putin is blaming President Trump for these high oil prices (and Putin is right) .... Putin: Trump Is To Blame For Higher Oil Prices (Zero Hedge). On a positive note, Russia and Saudi Arabia are going to increase their oil output over the objections of Iran .... Exclusive: Saudi Arabia, Russia agreed in Sept to lift oil output, told U.S. (Reuters).
Update: This is a group that I would not want to go against .... Global energy bosses send Trump a message: world needs Russian gas (Reuters).
I wouldn't want to go against global energy bosses either, at least not without a VERY GOOD REASON and it better be ABSOLUTELY NECESSARY. So far those wishing a conflict with Russia have yet to provide a good reason or to establish why it is necessary. In other words, why do we risk need to risk the lives of our loved ones to fight a war that winning is problematic at best and if we do win we achieve nothing of value? Make believe fantasies of Russian electoral interference, preservation of the political and economic fortunes of HRC, and/or support for the chump Ukraine simply aren't sufficient.
ReplyDeleteI will read the report by the world energy bosses, time permitting. Between work and family, I am EXTREMELY busy. The notion that the world needs Russian gas is an obvious one and it underscores what I have been stating for years. Countries as powerful and influential as Russia simply cannot be sanctioned. At one point candidate Trump and president Trump had this exactly right. Engage with Russia, respect them, recognize them as the equal and in some ways superior that they are. While we obviously will not agree on everything, this is obviously going to be a better approach than behaving towards them like the drunken fool in a bar looking to pick fights with them anywhere and everywhere.
Somewhere POTUS appears to have lost his way on this. While the rhetoric may have cooled somewhat at least from POTUS himself, the actual policies towards Russia have been tougher than those of his predecessor and unfortunately certain crazy fools in the US government are more than willing to accommodate such insanity. In the last several days we've had top American officials threatening to blockade Russia and threatening to attack Russian missile installations. The fact that these officials still hold their jobs and have not been fired as they should have been suggests that POTUS, on some level at least, supports these positions.
The statement by the energy bosses appears to be spot on. Trump would do well to listen to them and act accordingly. When in a hole, the best thing for one to do is STOP DIGGING!!
Isn't a good thing for the US, SA and Russia? Possibly boosting our individual economies?
ReplyDeleteFor our economy, at least in the Houston, TX where I live that has a oil and gas production component the current price is optimal. For other areas of the US that don't have this component, the current price may be to high.
DeleteThe point being POTUS has said he wants prices lower. Sanctioning Russia is contrary that goal.