US Oil Producers Fail to Produce

[Seran]

Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65

Several E.U. member states made it plain that they will veto any E.U. proposal to ban Russian oil (or gas) imports.

Removal of oil ban ‘fear factor’ may significantly reduce risk premium in crude oil prices.

Lack of clear leadership from Germany makes an effective oil embargo a long shot.

A key factor in the upper band of the benchmark crude oil trading ranges over the past weeks is market concern over a ban of Russian oil exports to the European Union (E.U.). Prior to the invasion of Ukraine, Europe was importing around 2.7 million barrels per day (bpd) of crude oil from Russia and another 1.5 million bpd of oil products, mostly diesel. This fear, though, is vastly overblown for several reasons analyzed below. The removal of this particular fear factor in the oil price will allow oil prices to move back over the course of this year to the level they were before the Russia-Ukraine ‘war premium’ began to be priced in by the smart money in September 2021, which was around US$65 per barrel (pb) of Brent. The primary reason why a meaningful E.U. ban on Russian oil (or gas) will not occur is that it would require the unanimous backing of all of its 27 member countries.

All of this rhetorical flim-flam by Germany and the E.U. has resulted in an oil price that remains way above where it should be, given the confluence of multiple bearish factors currently at play. On the supply side there remain definite pledges from the U.S. Energy Secretary, Jennifer Granholm, to engineer a “significant increase” in domestic energy supply by the end of the year, with the U.S. also working to identify at least three million bpd of new global oil supply.

https://oilprice.com/Energy/Oil-Pric...ing-To-65.html

[Seran]

Let's see,

Big Oil closed refineries - to maximize profit
Big Oil idled wells and stopped completion on existing wells to minimize supply - to maximize profit (they announced it publicly!)
Big Oil is reaping more profit in six months than they did in six years, by doing all of the above

But somehow the odious morons on the Right have convinced a handful of morons here that it's Biden's fault. This just

High Gasoline And Diesel Prices Are Here To Stay

U.S. gasoline and diesel prices are soaring to record highs nearly every day these days, as crude oil prices hold above $110 a barrel, the Russian invasion of Ukraine upends global crude and refined product trade flows, and refinery capacity globally is now lower than before the pandemic after some refineries—including in the United States—closed permanently after COVID crippled fuel demand in early 2020. There isn't a quick fix for all-time high fuel prices in America— or elsewhere — analysts say. The quickest fix is actually not one American consumers would want — a recession that would lead to job losses.

Despite the Biden Administration's months-long efforts to lower gasoline prices — including massive releases of crude from the Strategic Petroleum Reserve (SPR) and blaming oil companies for price gouging — U.S. refineries cannot catch up with demand.

Not that demand has soared so much. It's the capacity for supply, globally and in the U.S, that is now a few million barrels per day lower than it was before the pandemic.

U.S. Refinery Capacity Lowest Since 2015

Some 1 million barrels per day (bpd) of refinery capacity in America has been shut permanently since the start of the pandemic, as refiners have opted to either close losing facilities or convert some of them into biofuel production sites. Globally, refinery capacity is also stretched thin, especially after Western buyers — including in the U.S. — are no longer importing Russian vacuum gas oil (VGO) and other intermediate products necessary for refining crude into gasoline, diesel, and jet fuel.

The fuel market is extremely tight in Europe, too, considering that many refiners refuse to stock Russian crude and suppliers shun Russian diesel, even if the EU is still struggling to reach a common stance on an embargo on Russian oil imports.

In the U.S., refinery operable capacity was at just over 18 million bpd in 2021, the lowest since 2015, per EIA data.

"As you well know, 1 million barrels of distillation capacity has exited the system since pre-pandemic," Mike Jennings, CEO at refiner HF Sinclair and Holly Energy Partners, said on the Q1 earnings call last week.

Distillate refining margins are sky high due to a shortage of refined product, he added.

https://oilprice.com/Energy/Energy-G...e-To-Stay.html

[Seran]

The majority of the people know it's Russia's unprovoked invasion of Ukraine and greed amongst Big Oil, yet for the simplicity of seeing Biden as President and Democrats being in power get to share the blame. Seems as if people are smarter than the idiot Conservatives on this board.

Biden, Putin or Big Oil: Who is to blame for high gas prices?

The vast majority of Americans blame Russian President Vladimir Putin for skyrocketing gas prices, a new ABC poll found this week, but nearly as many also blame oil companies.


Despite the overwhelming majority of respondents pointing the finger at Putin and Big Oil, there was plenty of blame to go around, with a slim majority saying Democratic policies and President Joe Biden were also causing factors in pain at the pump. Similarly split views were seen in a recent NewsNation poll.

https://fox59.com/news/national-worl...gh-gas-prices/

[Tgo01]

Seran seems big mad again.

[Gelston]

So, the buck doesn’t stop with Biden?

[Suppressed Poet]

Biden is well aware that everyday American people are suffering from inflation and high gas prices.

He can taste it…

[Seran]

The lack of coherent thought amongst the Conservatives here is vastly amusing.

[Seran]

Perfect example of what Big Oil is doing in the United States, artificially manipulating prices upwards despite the administrations efforts to reduce prices. The inventory it's there, but the executives are illegally price gouging.

Explainer: Why Indonesia's palm oil export ban has not cooled cooking oil prices

May 17 (Reuters) - Indonesia, the world's biggest palm oil exporter, has since April 28 halted shipments of the edible oil in a bid to flood the domestic market with supplies to control the soaring prices of cooking oil.


Despite these tough policies that have rattled edible oil markets and cost hundreds of millions of dollars in lost revenue, the price of cooking oil, a staple for Indonesian families, has not come down, hitting the approval rating of President Joko Widodo.

Trade Minister Muhammad Lutfi on March 18 blamed a "palm oil mafia" for exploiting the situation. Sending a chill through one of Indonesia's main export sectors, the attorney general launched a corruption investigation over palm oil export permitting, arresting a senior trade ministry official and three palm oil executives.

"The factories have the cooking oil, but they are not selling to consumers," said Gulat, who believes the system should be streamlined.

https://www.reuters.com/markets/comm...o6AhrLB0RQWQ4Y

[Parkbandit]

Perfect example of what Big Oil is doing in the United States, artificially manipulating prices upwards despite the administrations efforts to reduce prices. The inventory it's there, but the executives are illegally price gouging.

https://www.reuters.com/markets/comm...o6AhrLB0RQWQ4Y

Wait... "Big Oil" is now including any company that makes any type of anything that has the word "oil" in it?

[Methais]

Perfect example of what Big Oil is doing in the United States, artificially manipulating prices upwards despite the administrations efforts to reduce prices. The inventory it's there, but the executives are illegally price gouging.



https://www.reuters.com/markets/comm...o6AhrLB0RQWQ4Y

Palm oil hahahahahahaha look at this fucking idiot