Russia Just Invaded Ukraine

[Seran]

Excellent set of charts by Steve Rattner on Morning Joe today about Russian oil. You can view the charts on Rattner's twitter account at https://twitter.com/SteveRattner Unfortunately, I cannot find a link to the video in which he explains the charts.

The charts show that the United States is the world's largest oil producer, accounting for 20% of world production, followed by Saudi Arabia at 12% and Russia at 11%. The U.S. is a net exporter of oil. We import about 0.4% of our oil supply for Russia. The reason we are a net exporter of oil and also an importer of oil is because we refine imported oil before exporting it. Banning Russian oil from being imported into the U.S. would cause almost no harm to Russia. But it would increase oil prices. Just discussing it has increased oil prices, which is a benefit to Russia and to oil production companies in the U.S. If the rest of the world, including China, banned Russian oil imports, then that would have a significant impact on Russia.

In my opinion, the U.S. should not unilaterally ban Russian oil. If Europe bans Russian oil, then we should join them for purposes of showing solidarity. A European ban would be highly disruptive, because it would require Russia to modify its distribution systems to sell to other countries, which would take some time. Of course, it would also take time for Europeans to modify their oil import systems, which would hurt their economies.

I really don't believe a western sanction in Russian oil and gas imports will affect the country due to so many of it's customers on its southern and southeastern borders having no qualms by Russian oil. China and India will simply by more oil, at distressed prices mind you as they can demand a discount due to sanctions.

The US is seeing massive price increases simply because we're a net exporter of oil now and export massive quantities of gasoline. There is no shortage of oil or gasoline in the United States as a result of losing 200,000 barrels of oil we purchase from Russia.

Meanwhile, with all the calls for OPEC to increase production, there is very little spotlight out on American producers who have idled production and exploration for new oil in an effort to stabilize high prices. They're simply enjoying massive profits.