INTERESTING ARTICLE Dan??

[Fraser921]

UN puts oil traders’ ‘super profits’ in its sights:

The United Nations called on Monday for a “radical” overhaul of financial regulations designed to limit the profits of oil companies, financiers and major traders like Vitol and Trafigura following commodity price shocks.’

Spiking prices pushed millions into poverty in 2022 while allowing corporations to make “super profits” on the back of high oil prices and other commodities, according to the UN Conference on Trade and Development (Unctad). The European Union last week agreed to introduce windfall taxes for energy companies’ record profits. > profits are bad

Commodity price fluctuation has contributed to a “grim” outlook for international trade, said Unctad. It said the world is on course for a global recession that could have a greater impact than the 2008 financial meltdown or the Covid-19 crisis in 2020.

Unctad predicted global growth of 2.5% in 2022 slowing to 2.2% next year with Russia’s war in Ukraine, the continuing impact of the pandemic and rising interest rates all pushing the globe towards “global stagnation”.
Unctad said that developing companies had been particularly hard-hit by rising prices of grain, energy and other essentials. It criticised the surge of speculative “betting frenzies” that contributed to price volatility.
Excessive speculation > not their fault

“All the major oil companies, leading United States banks and private energy trading houses led by Vitol, Trafigura, Mercuria and Glencore are involved in speculative energy trading,” said Unctad in its 70-page trade and development report for 2022.

“The effect of the excessive speculation is overwhelming volatility in oil prices, often driving the price of a barrel of crude oil $25 to $30 above what market fundamentals dictate.” > If it weren't for them crude wouldnt move from point a to point b

It added: “The resulting super-profits enjoyed by these firms stand in sharp contrast to the economic hardship experienced by households in developed and developing countries alike, as the price of these basic necessities has spiked.”

It called on regulators to consider a series of “radical” steps to increase transparency and reduce speculative trades in the commodity markets. >I wonder if Biden SPR dump is part of the market manipulation

Traders say they are subject to the fluctuations of markets that have been roiled by Russia’s invasion of Ukraine and the impact of sanctions imposed on Vladimir Putin’s government and his associates.

The price of benchmark crude peaked above $120 a barrel in March — less than two weeks after the start of the war — and in June before falling back to below $90 in September.

>Oil is at lowest price of year but lets not use a energy crisis to blame somebody else for your own idiocity

[Fraser921]

The UN is useless.

Will they crack down on China excess profits?

https://oilprice.com/Latest-Energy-News ... ofits.html

And probably Boston , as it's illegal to ship from Louisiana direct to Boston on a ship that's not made and crewed from the US. But it is legal to ship from Russia or china to Boston

The numbnut governor of New York would not allow a pipe from the Marcellus to cross NY

[dan_s]

Remember that those who tax the big profits never step in to help upstream oil & gas companies that go bankrupt during commodity price pullbacks. The same governments forced Climate Wacko energy programs that lead to under-investment in exploration, which lead to this energy crisis.

If they cap profits, it will make this crisis much worse and actually prolong high gasoline and diesel prices.