Oil Slick Stuff

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[TD][h=1]UN, US call for ending blockade of oil fields in Libya[/h]
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Source: AP

CAIRO (AP) — The United Nations and the United States on Monday called for the lifting of a blockade on oil production at two of Libya’s key oil fields as prices soared to over $130 a barrel.

Stephanie Williams, the U.N. special adviser on Libya, said blocking oil production from the Sharara and el-Feel fields “deprives all Libyans from their major source of revenue.” She tweeted: “The oil blockade should be lifted.”

Richard Norland, the U.S. ambassador to Libya, also called for an immediate end to the shutdown.

The closures have caused Libya’s daily oil production to drop by 330,000 barrels, according to the state-run National Oil Corporation. Before the shutdown, Libya’s production stood at around 1.2 billion barrels a day. The North African nation has the ninth-largest known oil reserves in the world, and the biggest oil reserves in Africa.

Read more: https://apnews.com/article/business...ited-nations-214d20d65ff4e52e5df065942b3ca9c7
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nnuut said:
Oil traders eye $200 per barrel this month: report

Traders are looking to cash in on the potential oil scarcity from the Russia-Ukraine war
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Well, what will the price of a gallon of gas be if the barrel is at $200? Im thinking about $8 a gallon ought to be where it goes.


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nnuut said:
Who is the BLAME?
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Sanctions, sanctions, sanctions. Russia is still exporting their oil and it's still being bought - as long as there is a buyer. Who's buying, we may never know.

Kill off "all Russian oil", it only goes higher, and some nations will continue to buy it. Last week Shell bought some at a discount and that still turned out to be a very smart move. I'd bet many are doing the same but are not willing to announce it for fear of a blowback.
 
Listening to an economist from a DC think tank yesterday whose opinion is that the only way to damage the russian economy is to increase the world wide supply which will drive oil prices down. He believes a ban on russian oil will only drive their revenue up. A limited supply only pushes prices up. They will always be able to find a buyer at the right price. Seems to make sense to me based on my limited economic knowledge. Any opinions out there in TSP'r land ?
 
Of course they'll find buyers especially if offered at a slight discount. They're still making a lot with $100 barrel. Petrodollars will have a hard time after this. Russia, China already planned to leave the USD for their own oil trading currencies before the invasion. Eventually, buyers will be forced to come back.

Who blinks first? Europe for sure can't hold out much longer. I did the math yesterday and it came out to around $7.50 a gallon in London. They're in a recession or will be starting one soon.

All in all, just plain bad policy decisions exacerbated by forced shutdowns. Higher wages for all, clean energy, no more drilling, the only ones who made money on this were the solar companies getting freshly printed free money. Everyone knew renewable energy could never sustain human life as we know it but everyone went along and played that game political reasons.

When oil prices rose in 2008 it was largely due to speculation that China would use all the world's oil to expand. Loaded tankers idled off coasts waiting to get to refineries. It was never a case of there not being enough supply.
 
So if we're going to "cancel all Russian oil" and start purchasing from Iran and Venezuela, then how is anybody going to tell the difference between where it came from? I understand most Russian oil is refined in some intermediate way and isn't pure crude, but still, what's stopping some country from buying from Russia, then selling to the US/Canada/Europe? It may be no different from a market maker that acts as an intermediary between buyers and sellers.
 
Good news: Looks like we are talking quietly with both Venezuela and Iran about possibly resetting relationships and resuming oil arrangements. Could be a positive sign


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bmnevue, in 20+ years living near an AF base, I have found AAFES prices are always the same as the local area. NAVEX may be different.
Bquat, I lived in Sierra Vista, AZ during the price hike/fuel shortage in the early 80s. Had a pickup that held 40 or so gallons. Went to either Naco or Agua Prieta, Sonora to fill up. It was not that much cheaper but then these are border towns. Reminds me of lots of jokes about beans and gas. Lots of advice about quality of gas and ruining the vehicle. I never had a problem with that, just remember being scrutinized at the border crossing by US agents about permanent v portable gasoline containers.

Gas here (Phoenix area) about $4.60 per. Two weeks ago it was abut $3.60 per. Both vehicles getting low of course.

PO
 
Here on the North Coast the average price of gas is $4.09. According to Gas Buddy the lowest is $3.99 and the highest is $4.39 in the area.
 
Russia had been moving towards a non dollar oil market but wasn't able to fully move in that direction before the invasion and are paying the price in "sanctions". You can expect China to not make that same mistake.

Saudi Arabia is in active talks with Beijing to price its some of its oil sales to China in yuan, people familiar with the matter said, a move that would dent the U.S. dollar’s dominance of the global petroleum market and mark another shift by the world’s top crude exporter toward Asia.
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https://www.wsj.com/articles/saudi-...of-dollars-for-chinese-oil-sales-11647351541?
 
So- West Texas Intermediate (WTI) Oil was $123 a barrel on March 8th. Now, just a week later, the price has collapsed over 20%, to under $98 a barrel.


How come the price at the pump goes UP the same day oil goes up, but the pump price DOESNT fall when the costs go back down?


Hmmmmm.
 
Oil is trading down below $107 right now, a $7 move. I would have thought the futures would have been bouncing on this?
 
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