10 thoughts on “Unfair!

  1. Profit motive says:

    In just the past three months: ExxonMobil pulled in nearly $20 billion in profit. Chevron took in more than $11 billion, Shell $9.5 billion, BP over eight billion. And, today, the world’s largest oil company, Saudi Aramco, reported making $42 billion this quarter. (PBS November 1, 2022)

  2. Wheeler-dealer says:

    “Why Is Diesel Being Exported During A Shortage?” (Forbes)
    “The short and simple answer is that companies are doing it because they can, and because they are making more money doing this than selling it in the U.S. Consumers may complain, but ultimately these companies are trying to make as much money as they can, and that means selling products to the highest bidders.”
    https://www.forbes.com/sites/rrapier/2022/11/04/why-is-diesel-being-exported-during-a-shortage/?sh=7ff2bca41eae

    “U.S. energy executives told Jennifer Granholm that shuttered crude oil refineries won’t restart, Valero’s Chief Executive Joe Gorder said on Tuesday.
    The comments were made to the U.S. Energy Secretary at a recent White House meeting with energy executives, Reuters reported on Tuesday.
    Shuttered refineries unlikely to start back up are the latest nail in the U.S. refinery coffin. In June, Chevron CEO Mike Wirth posited that there would never be another new refinery built in the United States.” https://oilprice.com/Latest-Energy-News/World-News/Energy-Execs-Tell-Granholm-Shuttered-US-Oil-Refineries-Wont-Restart.html

    Members of the G7 have agreed to set a fixed price for Russian oil exports as a cap rather than a price set as a discount to a benchmark, Reuters has reported, citing an unnamed source familiar with the discussions.
    The price itself has yet to be determined, the source said, adding that, according to the G7, “This will increase market stability and simplify compliance to minimize the burden on market participants.” https://oilprice.com/Latest-Energy-News/World-News/The-G7-Will-Set-A-Fixed-Price-On-Russian-Oil.html

  3. John D. says:

    (Bloomberg) –Treasury Secretary Janet Yellen said it’s “very likely” that European sanctions will force Russia to offer some of its crude oil exports at a price set by the US and its allies, if Moscow wishes to prevent a shut-in of some supplies.
    “They’re going to be looking for buyers, and we think they’re going to have a hard time selling all of it,” Yellen said Saturday in an interview with Bloomberg News. “Our estimation is there would be some shut-in on Dec. 5 unless they’re willing to accept a price at or below the cap for buyers around the world.”
    On Dec. 5 the European Union will impose a ban on seaborne imports of Russian crude. On the same day, the EU and UK will prohibit their companies from providing shipping, trade finance and insurance for tankers carrying Russian oil unless the shipments are priced below a cap. The cap level – which has not yet been agreed – will be set by a coalition that includes Group of Seven governments and the EU.
    Several large oil importers, including China and India, have said they will continue to purchase Russian oil, and with fewer buyers on the market, they’re expected to see bigger discounts. Together with Moscow, they should be able to arrange the shipping and financial services necessary to deliver substantial amounts of Russian oil. Russia is currently exporting about 3.6 million barrels a day by sea.
    But if that shipping and insurance capacity is exhausted, those same buyers will have to secure deals at the capped price in order to access European services and arrange for delivery of additional supplies.
    Russian officials including President Vladimir Putin have said Moscow would refuse to sell oil to any countries participating in the price cap. They haven’t said whether they would refuse any sales at that price to buyers outside the cap coalition who have no other way of securing delivery. https://gcaptain.com/russia-faces-oil-shut-in-or-price-cap-amid-sanctions/

  4. Invisible Hand says:

    “Oil Prices Continue To Slide After US Midterm Elections” (Bloomberg) https://gcaptain.com/oil-prices-continue-to-slide-after-us-midterm-elections/
    “Oil dropped the most in a week since April as the full weight of languishing Chinese demand and more economic tightening radically shifted the market’s sentiment.
    West Texas Intermediate fell 1.9% to settle just over $80 a barrel. US futures fell 10% this week, the most since Biden ordered a historic discharge of crude from the Strategic Reserves in April. Swelling Covid cases in China and aggressive monetary tightening by central banks have combined to erase all the gains earned last month when OPEC and its partners slashed production by 2 million barrels a day.
    Pullbacks were evident along most of the oil-trading complex. On Friday, the US prompt-spread flipped into contango, a structure that signals oversupply, for the first time since last year. Meanwhile, a deteriorating market for physical barrels has also weighed on prices as demand for winter-delivery cargoes has weakened.
    The collapsing gauges of market health sent bulls running for the exits. Hedge funds slashed bullish bets for Brent crude the most in four months. Money managers’ net-long positions on the international benchmark fell around 30,000 contracts, according to data from the U.S. Commodity Futures Trading Commission released Friday.”

  5. Will C. says:

    The oil markets have been seesawing in a spectacular fashion this week. Still trying to overcome the pain of so many financials quitting the game last week, a WSJ report that argued OPEC+ was looking to increase its production target by 500,000 b/d come January 2023 has sent prices dovetailing, only to be halted by Saud Arabia, the UAE and Kuwait all denying the rumors and insisting that if anything, OPEC+ would be cutting further.

  6. Mike says:

    (11/28/22): US oil prices are at their lowest level in nearly a year. Gas is down 6% in a month https://www.cnn.com/2022/11/28/energy/us-oil-prices-china-protests/index.html
    US oil prices have fallen to their lowest level since December 2021 on fears that protests in China against Covid-19 lockdowns will dent demand.
    West Texas Intermediate crude oil futures, the North American benchmark, slid 3.2% on Monday to trade close to $74 a barrel, a level last reached in late December. Futures for Brent crude, the global benchmark, also dropped 3.3% to trade close to $81 a barrel. That’s its lowest level since January.
    Global oil prices have fallen about 35% since June as strict coronavirus restrictions in China have kept demand weak, and as some of the world’s major economies have signaled they are heading toward a recession.

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