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.
The poor and middle class are the ones hurt by high gas prices (the ones Democrats pretend to care about) The rich don't care how high gas go.
I understand that you completely miss the point of what I said. But that is alright, I received exactly what I expected.
That is OK, we all know the left doesn't understand how a free economy works; or how the price of oil and gas are established.
We also know that Brandon took actions as soon as he took office to diminish the US supply of oil and gas. We are now paying for those actions; and we damn well know who to hold responsible at mid terms.
It would be best before you accuse others of not understanding how the price of oil and gas is established that you understand it yourself. Seems that throwing shit at the wall and hoping it will stick is the extent of your knowledge.
When a sitting president reverses all of the energy policies that made this country independent the day he took office, and the price of gas was immediately affected, then we fully understand who is responsible for the rise in prices.
More BS....You realize that in 2021 the US was the largest producer of oil and a net exporter of oil, don't you?
"More BS....You realize that in 2021 the US was the largest producer of oil and a net exporter of oil, don't you?"
That's all they got plus I can't believe the outright lie that is being peddled by certain folks that whatshisname made us energy independent.
You obviously don't see the correlation between BEING ENERGY INDEPENDENT and LARGEST PRODUCER OF OIL AND NET EXPORTER OF OIL.
When have we been energy independent?
Never but that doesn't stop certain posters from saying that over and over and over and over and over and over and over and over and over and over again.
You don't know how global markets work.
No he doesn't. Many on the right here seem to not have the faintest understanding of how the global oil market operates.
Because unless you are suggesting that all the oil based products consumed in the US were produced using only domestic sources, there isn't one.
So you don't see the correlation either.
You are inventing a correlation. The US can pump out more and more oil, and lower gas prices (provided other nations don't reduce their output) but we will not achieve energy independence. The only possible way for the US to be energy independent is for all of our energy needs to be met by domestic sources. That is an impossible task. Even if we drilled in every possible spot and pumped out every possible ounce of oil we could I don't, think that we would be able to meet domestic demand.
Then I recommend you phone a friend to explain it to you.
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.
" He's trying to make us believe he a "moderate".
No one with a lick of sense believes that for a second.
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]
Poor people typically drive older cars that get poor mileage compared to newer ones.
I'm sure paying a dollar more per gallon won't have any effect on the poor at all.
And since it seems like it will be necessary:
/s
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.
trumpturd didn't make us energy independent no matter how much his supporters/enablers, such as yourself, would have you believe.
Is this not your comment? Just how in the hell do you think we got to that point which Mr. Biden has so fucking generously reversed?
trumpturd didn't make us energy independent no matter how much his supporters/enablers, such as yourself, would have you believe.
Did you just call yourself a Trump supporter? Sure looks like it in your reply to yourself. Wow. Didn't know you were a Trump supporter. Good for you.
All after Joe, That is indisputable fact.
Nope.
Before the narrative gets too carried away: Gas prices aren't up because the White House is banning Russian oil. They're up because Joe Biden campaigned on an energy "transition" away from oil and launched a war on domestic-U.S. production.
Feel free to post your data of gas prices before and after Joe took office up until the Russian invasion took place. Just saying no would lead one to believe you are just ignoring facts due to TDS .
Funny how Joe promised all the people losing their jobs that there would be other high paying jobs waiting for them. He forgot to mention those jobs wouldn't be around for ten years or so
I'll never forget him telling 40-50 year old Coal Miners to go to school to learn a new profession.
There was nothing quite like the look on their faces.
A fine example of Joe's grasp on reality.
So they're too old to learn another profession?
Why?
meant to reply to RDTC - not true
Not true.
Facts aren't something that are normally supplied on these 'ariticles'
He/they just don't care about working people.
It might seem easy from where you are sitting.
First of all, how would one be able to go to school when one has a family to support?
"He/they just don't care about working people."
That would be true of the gop/gqp/republicans/alleged conservatives, NOT Democrats/Liberals/Progressives.
So they're too old to learn another profession?
Why?
That is why I suggested you post data that you find, if you can.
Joe Biden being President has nothing to do with the increase in gas prices, NOTHING.
Saying NOTHING is not data. The idea that gas prices would have increased to this level even if Donald was president (mean tweets and all) is ridiculous.
See 2.2 for a few details as to what Joe has done.
President Biden has nothing to do with the rise in gas prices. You have supplied nothing that shows that.
Joe Biden might not even be aware of real gas prices.
Do you think his handlers have informed him yet?
So much for my attempt to have a rational discussion.
Have a wonderful day, and feel free to block me again.
He may know it but probably can't relate. Hell last time he probably had to pay for gas it wasn't much over a dollar a gallon if that much. They are all out of touch
They might be trying to hide it from him, that would not be hard to do since he has no grasp of reality.
See 8.2.21
I didn't block you in the first place.
Get a clue.
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Yes, Biden relied on taxpayer funded AMTRAK.
[Deleted]
You're going to have to prove that meme. That looks like gas prices TODAY.
It's been fact checked after the Psaki presser yesterday. Biden owns the highest gas prices in US history and he/she knows it.
Read the headline! It says gas prices were this high thirteen years ago. I remember. Do you?
I can't watch Peppermint Patty. That thing makes me want to drink. Do we really need a fact check that the high prices are all on Biden?
You're going to have to prove that meme. That looks like gas prices TODAY.
Y'all are just so happy that after that steaming pile of shit of a 'president' of yours that you get to blame everything on President Biden even though it's not valid.
Crude Oil Production in the United States averaged 7601.91 BBL/D/1K from 1950 until 2021, reaching an all time high of 12860 BBL/D/1K in November of 2019 and a record low of 3974 BBL/D/1K in September of 2008.
https://tradingeconomics.com/united-states/crude-oil-production#:~:text=Crude%20Oil%20Production%20in%20the%20United%20States%20averaged,low%20of%203974%20BBL%2FD%2F1K%20in%20September%20of%202008.
Jen Psaki blatantly lied about it yesterday
We all remember prices this high 13 yrs ago!
And I'm supposed to believe your meme or what you have to say? Not going to happen.
Oh. Of course. Her, this shitty administration and the left are still trying to put it all on somebody else and distract from the fact they caused the problem on Jan 20, 2021.
Biden now holds the record.
Be proud!
US gas price average hits $4.17, an all-time high, AAA says (fox6now.com)
US gas prices now highest in history, surpassing 2008 record | American Military News
Gas prices are higher than ever, and the US is likely to see $5 per gallon before they start to come back down (yahoo.com)
Read the headline in 8.2.32 It says "breaking record from 2008"
Did you here Biden today? Now it's the Putin gas hike. Their propaganda is worse than the silly Russian propaganda.
[deleted]
Assuming that is true what exactly does that mean for today? It is OK now since it happened then too?
Which is 95% of the time
Criticism of Biden, valid or invalid , is partisan. He has no scandals to objectively criticize.
Criticism of Trump is mainly because he is morally and psychologically unfit to hold public office.
The right doesnt like Bidens policies. Well, he won the election.
People dont oppose Trump mainly because of his policies, they oppose him because he is a jagoff that constantly embarrasses their country.
I'd rather have corruption than radical policy that has brought the country to it's knees.
The right doesnt like Bidens policies. Well, he won the election.
But he didn't run on those policies. He ran as a moderate who did very little campaigning.
May democrats lose big & bad from now on!
I didn't have enough alcohol to make Biden even remotely comprehendible. But the "Putin gas hike"? That's hilarious.
That's what he read off his mortal enemy, the teleprompter, hours ago.
people oppose Trump because he is living rent-free in their heads a whole year after he left office.
Interesting that some choose to yap on endlessly and quite boringly about Trump when their own man is in office screwing things up.
I can just see 10 years from now some will STILL BE WHINING AND BITCHING ABOUT TRUMP.
And I am sure they will be powerless to stop themselves.
While trumpturd and supporters still claim that the election was stolen from him and we're the ones with TDS
Americans: “Gas is too expensive!”
Biden: “If you can’t afford to fill your gas tank, just go out and buy a $70,000 electric car.”
It's called a disconnect.
That's hilarious.
No scandals, on that you are correct. It's everything else he's fucked up that everybody (on BOTH side of the aisle) is criticizing him for. Well, everybody with the exception of those who just can't seem to move on from Trump.
And like many of the other claims you made, that you have yet to back up.
Why are you quoting me to JR?
He can read my posts as easily as you.
When you're right, you're right!
America has been brought to her knees? Your hysteria kneeds pads.
There is a difference between revenue, the total monetary value of all business, and profit. You should know that. On average, the profit is in the 5-7% range. Yep, it is a lot of money, like $174Billion in the first 3 quarters of 2021 between 24 companies but, that means the revenues were $2.9 TRILLION. So if their revenues went up, the profit realized from that revenue bump would also but NOT the way that stupid damned meme would try to convince the sheep.
Funny how some folks think I read their posts.
[deleted]
And I'm not the one who gets their ass handed to them on a daily basis.
I believe that's called "Game, Set, Match!"
[deleted]
[deleted]
Nope, he's never done that, ever.
Interesting how some like to make me the topic/subject of the article.
[deleted]
High oil/gas prices are a feature for Democrats, not a bug.
What I wouldn't give for a mean tweet and $2.50/gallon gas right now.
Morning Texan...we are now paying $2 a litre for petrol at the moment... can't recall paying that before..well over $3 a litre in New Zealand...
But surely the world has caught on now that price rises are caused by everything and anything these days...
Wars, the virus, stock exchange, the Saudis, holidays etc etc...any excuse will do...we know it before they even do it..
Good morning to you!
I just filled up today at $3.69 per gallon.
I expect I will pay over $4/gal for my next tank.
Maybe the war in Ukraine won't drag on and on.
So I take it you don't agree with the arguments here stating that its all the fault of the Democrats-- a deliberate attempt to make us suffer???
What did you read?
Anoon Krishna...I keep out of your politics... firstly have no idea who they, who they represent and most couldn't lie straight in bed...much the same here.
They have one agenda, feather their own nest and when they stuff it up...resign because they want to spend more time with the family...and collect their retirement benefits...
Ever seen a broke ex president or politician??
"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.
Oh, yeah, those MUST have been what he was talking about--some 3 or 27 years ago events.
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...
Americans are forced to accept higher prices.
Moving away SLOWLY. Using a crisis to further the green agenda won't win over voters having to pay $1-2 more per gallon of gas now.
But it is amusing that Democrats think voters won't vote their wallets come election time. have they learned nothing over the last 50 years?
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.