U.S. crude oil jumps to $125 a barrel, a 13-year high on possible Western ban of Russian oil
S E E D E D C O N T E N T
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 mid-2008. At one point the price topped $130 a barrel.
The international benchmark, Brent crude, traded 9% higher to $128.60, also the highest price seen since 2008.
"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.
The U.S. average for a gallon of gas topped $4 on Sunday, according to AAA, in a rapid move due to the conflict. The underlying cost of oil accounts for more than 50% of the cost of gas that consumers put in their cars.
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From the day he took office, Biden has pursued the fantasy green energy policy of the radical left.
They worry more about global warming than people going hungry.
No he hasn't.
More war profiteering and that is the extent of this.
After all, it is patriotic to lose a leg or your life for your country---------but not patriotic for the very rich to sacrifice a penny for their country. The typical double standard proffered by the American right wing.
It takes profound hutzpah for Biden and the left to try and blame oil companies or the war for what he has done. It is he his team’s anti-oil animus that has driven fuel costs skyward. In fewer than 11 months, this administration has:
And it was not unexpected:
Biden and the left lost all chances of blaming anybody when the EO's were signed for much of that in the 1st week of this train wreck of an administration.
We already get oil from the first parts of the Keystone.
Proof? We are still getting oil from that line.
Yup, because the oil companies have leases already that they are NOT using.
Please read above.
Again, Yup, because the oil companies have leases already that they are NOT using.
First of all it was a proposition. Second, methane should be contained. The industry does what is good for the industry. They are exporting gas when they should be keeping it in the country right now.
Proof.
And it was not unexpected:
All yesterday's news.
Have you ever checked to see why oil companies are NOT using those leases? Industry analysts say there are various good reasons, but even if Biden were to do something to encourage production, they would not invest the money because they can't trust him to keep it going.
They would be re-investing the $ 21 Billion dollars we give them subsidies,
Federal Oil and Gas Subsidies: Fact vs. Fiction (enverus.com)
2/3s to 3/4s of the oil leases sit undeveloped, it isn't a new problem
and lobbying always prevents BLM from enforcing the law.
Most oil leases on public lands go unused (nbcnews.com)
Meh,
Why make up partisan BS for a decades old issue that has nothing to do with
who's sitting in the Oval office.
Okay. Right down 'the middle' of what?
He's trying to make us believe he a "moderate".
OIC. Well, there it is. There you have it.
The center
[deleted]
Right down the middle of the far right apparently.
O&G companies hold some 13 million acres of leases, some for as long as 40 years, that have not been drilled or explored. It is not the President who sets oil prices.
If you have a complaint, it is with the robber barons running those companies, not the government, whoever is in charge.
As the stat shows the number of active operating wells is still well below the pandemic level.
Number of United States oil and gas rigs in operation at the end of each month from December 2019 to February 2022
as the report shows we are still well below pumping oil wells vs pre pandemic.
Time for the oil companies to quit whining and start pumping.
Yeah, Ingraham's "Shut up and dribble," comes to mind, right?
For her, it might be more a case of "foaming at the mouth" rather than merely dribbling...!
They won't start pumping until it is profitable for them to do so. Restarting old wells isn't cheap; and with the new methane restrictions Biden put in place the number of wells that are financially feasible to start is diminished.
Finally, you may have actually started to understand how the oil market works.
Now we can work on your inability to understand the government leasing federal lands for oil exploration. First off Biden has granted more federal leases than Trump did in his first year. There are leases on 13 million acres of land that are not being used some quite old.
Keystone pipeline. The current pipelines that were expanded will handle more oil than Keystone would have if built and completed. Currently, in the US there are 19 pipelines in 2021 being built or expanded. BTW the current usage of the existing pipelines in the US is 50%...
I've posted links to all of the above numerous times, so I won't be doing it again since many on NT don't read them and continue with their BS comments.
How much, per barrel, is oil going for?
Really, and in my neighborhood today we passed at least 8 idle pumps.
All it takes is a key to the control box and a finger to turn the pump on..
.and two hands to open the appropriate valves
at 125$ or higher you would think all of the nodding donkeys would be .
nodding.
Right, tell me something I didn't already know.
Really, then explain why Biden then tried to put EO's in to stop new oil drilling on federal lands.
The oil companies had to sue Biden to stop the EO.
Also, Biden has put new drilling regulations on both old and new wells.
So US oil and gas companies are not going to reopen old wells, start new ones, or even search for oil on federal lands so long as it isn't profitable. Biden can sell all the leases he likes; the oil companies are counting on him being a 1 term president. They are hoping the next president repeals Biden's EO's and will be better to work with. Or do you not think that oil companies don't plan for the future? Until then US companies aren't going to do anything until the price of a barrel of oil is high enough for them to assume the risks and costs of reopening old oil wells and new ones.
You do realize that the Keystone pipeline was moving Canadian tar sand oil into the US for development right? Completely different source than the pipelines you are talking about. Stopping the Keystone pipeline did make two very large Democratic donors very happy; as the material will continue to be shipped on rail on aging tankers on the CP, BNSF, and CSX. That is so much safer than a pipeline./S With the added bonus that now the material is not going to be processed in the US- but sent directly to port and sent overseas for processing. A double win for Biden less oil in the US; and fewer jobs.
So you can jump up and down. Yell, scream, and post a million links to how Biden is doing every damn thing he can; and fail to leave out actions that he has taken to deter drilling in the US in the form of new regulations and EO's.
Fact is Biden and the Democrats don't want the US to produce oil and gas; and it shows in every action they take. Biden would rather have the US beholden to dictators and countries that can't stand the US to get our oil.
Answer is obviously not enough yet for US oil companies to restart old wells; and tap new ones. Otherwise they would be. The real question is if the price of a barrel of oil is $125 and they still aren't budging- what regulations or costs are present that weren't there before that are making them wait.
I heard one analyst say it was going to hit $200 a barrel. I have to reason to doubt it.
The world really doesn't give a fuck about the US; or Europe (in fact many oil producing countries consider this payback for past actions)- so getting them to pump more oil at this point is going to be hard. Unless it coming from countries we lift sanctions on and give them what they want like Venezuela (aid and lifting of all sanctions) and Iran (lifting of sanctions and money from oil sails to complete their nuclear program- and become the first middle eastern nation outside of Israel with nukes). Will those two countries increase in production be enough to lower the price of oil in the US? Considering the price of oil is set by the world market; no. Until the world supply of oil exceeds the demand expect the price to continue to climb.
What percentage of US oil is used domestically?
You understand that oil is drilled and gas is by for profit companies. It is not necessarily regulations or costs that are preventing more oil from being drilled. It takes quite a while to gear up, allocate and accumulate enough resources to restart old drilling. I would guess a full year to begin production again.
It was 38 to 40% but that has dropped.
No really. For profit- gee weren't my repeated posts stating that enough?
Show me where I ever stated they could just flip a switch and restart the pumps? It depends on the type of well and rig; how long since it has been last run; how much maintenance it needs; if any new environmental regulations are in place and extra equipment/machinery needs to be added; and for older wells if they are going to switch to fracking to get the last oil out.
It also takes a good amount of money. All of that money and assets being moved around is very hard to conceal. Wall Street would be all over it if US companies were showing signs of getting ready to restart production- but they aren't. Either the price of oil isn't high enough yet to turn a decent profit; or something else is holding them back. Maybe Biden should meet with the major oil producers and find out why they not increasing production? Or he could continue begging our enemies to try and save us.
There is a common misconception that the president (or Congress) runs there companies and makes decisions as to how much they drill. But they are private companies-- they decide.
Often they hold back when prices are low-- but ptices have recently gone up quite a bit, so they may start drillimg more now (although probably increase gradually as many feel there's still more upside to prices due to the war).
And not the stockholders?
You know, over all these years I keep reading that. But anymore, after watching the executive suites getting more and more millions, I'm not all that sure about 'the stockholders'. Most stock in any large corp is owned by institutions, not individuals. And who are the members of those institutions? The ones in the executive suites. So, I'm really not sure about trying to make things better for the little guy.
Unless you are a majority stockholder, you don't have say about shit.
Of course they will. And if the shoe was on the other foot, you can bet the bitching would be the same. I remember when I was in college and I said I was going to quit driving when gas got to 75 cents. That is equivalent to about 3.91 dollars now. The only difference is we haven't gotten to the point of rationing gas yet. It is almost like we are doing the 70's all over again.
What about the poor and [disadvantaged...Deleted]
Joe's thoughts on gas prices:
Are you sure this isn't a graph from when Nixon lifted price controls?
Yep, but I am sure there is a graph for then also.
High oil/gas prices are a feature for Democrats, not a bug.
"We can produce more than enough oil to make up for whatever it is we buy from Russia. I just don't get it. The only explanation is this religious zealotry on this Green New Deal stuff makes that an impossibility and it's going to lead us to a ridiculous policy."....Senator Marco Rubio
Like most politicans Marco really doesn't have much of a grip on oil production/type/origin. Was he bitching about Russian oil that we started importing in 1995 or the record year of 2019 of the importation of Russian oil.
Marco is doing what Marco always does, he's getting his con-credentials reapproved for the nth time. It's sad to watch.
Americans are willing to suffer higher gas prices to cut Putin and Russia out of world markets. We are moving away from fossil fuels anyway. This will just make renewable clean energy more competitive...
No we're not. If it weren't for some EO's Biden signed on January 20, 2021, we, and a lot of other countries wouldn't be in this situation.
Prove it!
(I just spent most of the day watching the stock market like a hawk.).
See Section 6
See second paragraph
Some of us have that luxury.
Yeah, but not all in 30 days.
This will probably put the US economy in recession if it continues for very long, which will make renewable energy capital more difficult to come by.
Canada's oil production has spiked this year to its highest level ever ... and so have prices at the pump. Must be Biden's fault. @!@
Canada has their own problems with mini Joe Justin.
How about that, Canada is just like every other nation in that regard.