Energy Report: Giving In
By Phil Flynn
Apr 22, 2021 08:31AM ET
Oil prices are pulling back on surging cases of Covid-19 in India and reports that the Biden administration is willing to lift sanctions on the Iranian regime so they can find a path to rejoin the 2015 nuclear accord. The Biden administration still seems desperate to resurrect this deal that favors Iran and is not favored by our allies in Israel or Saudi Arabia.
The Wall Street Journal reports that, “Two people familiar with the matter said the U.S. is open to lifting terror sanctions against Iran’s central bank, its national oil and tanker companies and several key economic sectors including steel, aluminum, and others. A senior European official said Washington has also signaled potential sanctions relief for sectors including textiles, autos, shipping, and insurance, all industries Iran was earmarked to gain from in the 2015 agreement. The Journal says that, “lifting terror sanctions against some of those state entities and critical sectors of the economy would act as a significant tonic to the crippled economy and represent a large share of the country’s income.”
Yet is this deal good for world peace and is it in the best interest of the region and the world?
The deal always allowed Iran a path towards building ballistic missiles and the ability to build a nuclear weapon in the future. The regime’s record of terrorism and its consistent violations of human rights makes one wonder why the Biden administration wants to prop up it up. Iran was increasingly isolated and we were seeing real strides for peace in the region with former foes recognizing Israel’s right to exist. Instead, we are rewarding a regime that has spread death and war and continues to threaten to wipe Israel off of the face of the earth and teach their children to hate America. Why does the Biden administration want to prop up this regime?
At the same time, Russia is beefing up its troops on the Ukrainian border, making threats against its critics. AP reports that, “the Russian military on Thursday conducted massive drills in Crimea involving dozens of navy ships, hundreds of warplanes and thousands of troops in a show of force amid tensions with Ukraine. The manoeuvers were described as the largest since Russia annexed the Black Sea peninsula from Ukraine in 2014 and threw its weight behind separatist insurgents in eastern Ukraine. The exercise comes amid increasing violations of a cease fire in Ukraine’s east and a massive Russian troop buildup on the border with Ukraine that raised Western concerns.
This comes as Reuters reported President Vladimir Putin warned the West on Wednesday not to cross Russia’s “red lines”, saying Moscow would respond swiftly and harshly to any provocations and those responsible would regret it. At a time of acute crisis in ties with the United States and Europe, with Russian troops massed near Ukraine and opposition leader Alexei Navalny on hunger strike in jail, the Kremlin leader used his state of the nation speech to project a message of Russian strength and defiance in the face of outside threats.
“We want good relations…and really don’t want to burn bridges,” Putin told both houses of parliament. “But if someone mistakes our good intentions for indifference or weakness and intends to burn down or even blow up these bridges, they should know that Russia’s response will be asymmetrical, swift and harsh.”
On the supportive side for oil prices, the Energy Information Administration (EIA) showed a jump in gasoline demand in the U.S.
FEAR trumps FUNDAMENTALS: Record cases of covid in India has tempered demand expectations. The Wall Street Journal Reported that, “India reported more than 314,000 new coronavirus cases, the world’s biggest ever single-day jump of new infections, as the country struggled to keep a surge of infections from overwhelming its healthcare system. Hospitals in New Delhi and other hard-hit cities have been turning away patients and running low on oxygen, beds and other medical supplies.
Reuters reports that Libya’s oil production fell to about 1.0 million barrels per day (bpd) in recent days and could drop further amid budgetary issues, the country’s National Oil Corporation said on Thursday. Production fell from about 1.3 million bpd, the NOC said.
Yet in the short term it looks as though demand fears have slowed the oil uptrend and we may trade in a range again and await headlines on Iran and Russia. Still we expect a breakout higher at some point in the near term. We may trade sideways until we get news.
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MY TAKE: Demand for transportation fuels is rising and the rate of increase will accelerate mid-May. Demand for oil based products is seasonal and we are just a few weeks away from the high demand period (June to Sept).
Why is Biden so soft on Iran?
Why is Biden so soft on Iran?
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why is Biden so soft on Iran?
U.S. hope of Energy Independence vanished when Trump left office.
Team Biden needs to be very careful when dealing with OPEC+ countries because we need their oil and nothing will change that. Per EIA: Over the six weeks ending April 16 the U.S. imported 8,360,000 barrels per day of crude oil and oil based refined products.
Interior: Oil leasing freeze will continue into summer . E&E News .
The Interior Department won't sell new drilling rights on federal lands and waters until at least midsummer, officials disclosed yesterday, throwing fresh kindling on the raging debate over the nation's fossil fuel program as President Biden convenes world leaders to renew their resolve to drive down greenhouse gas emissions. The continuation of the leasing freeze fueled existing industry outrage that the Biden administration is throttling drillers and intending a more severe ban on oil and gas activity in the future. "This action will put jobs on the line," said Mallori Miller, vice president of government relations for the Independent Petroleum Association of America .
Op-Ed: There is a bipartisan moment for energy and climate this Earth Day . Center Square .
Authored by IPAA’s Jeff Eshelman. Too often, the conventional wisdom is that we have to decide between a strong energy industry and solutions to address climate change. That false choice couldn’t be further from the truth, and this Earth Day, let’s acknowledge that an innovative and robust energy sector is critical to finding solutions to our environmental challenges. And each day, America’s oil and natural gas industry is putting that into practice. Natural gas underpins renewable development by providing baseload power for electricity generation when solar and wind facilities go offline.
Bipartisan bill would accelerate LNG export reviews . E&E News .
Texas Republican Rep. August Pfluger introduced legislation yesterday that would speed up permitting to ship liquefied natural gas to foreign nations. The "Natural Gas Export Expansion Act" would amend the Natural Gas Act so export applications are treated equally regardless of whether that country has a free trade agreement with the United States. The bill would also remove the need for prior approval for LNG exports or imports between the U.S. and Canada or Mexico.
Shale gas drillers to keep 2021 capex flat under investor focus, analysts say . S&P Global .
Industry observers are expecting shale gas producers to stick to their promise to keep capital spending restrained as investors continue to keep an eye on the sector's performance. Shale gas drillers have had a history of matching their capital spending to the strength of gas prices, but often when they exceeded guidance, their stock performance dropped as investors walked away, according to S&P Global Market Intelligence data.
Fuel for Thought: energy security omens returning to haunt oil market . S&P Global .
Energy security concerns are bubbling beneath the surface as the global oil market seems to be entering into the early stages of recovery from the pandemic. While OPEC+ can provide the necessary crude as demand recovers in the near term, there may be a lack of firepower from the rest of the oil-producing fraternity further down the line. But the recent rise in oil prices could be just what the world needs.
Team Biden needs to be very careful when dealing with OPEC+ countries because we need their oil and nothing will change that. Per EIA: Over the six weeks ending April 16 the U.S. imported 8,360,000 barrels per day of crude oil and oil based refined products.
Interior: Oil leasing freeze will continue into summer . E&E News .
The Interior Department won't sell new drilling rights on federal lands and waters until at least midsummer, officials disclosed yesterday, throwing fresh kindling on the raging debate over the nation's fossil fuel program as President Biden convenes world leaders to renew their resolve to drive down greenhouse gas emissions. The continuation of the leasing freeze fueled existing industry outrage that the Biden administration is throttling drillers and intending a more severe ban on oil and gas activity in the future. "This action will put jobs on the line," said Mallori Miller, vice president of government relations for the Independent Petroleum Association of America .
Op-Ed: There is a bipartisan moment for energy and climate this Earth Day . Center Square .
Authored by IPAA’s Jeff Eshelman. Too often, the conventional wisdom is that we have to decide between a strong energy industry and solutions to address climate change. That false choice couldn’t be further from the truth, and this Earth Day, let’s acknowledge that an innovative and robust energy sector is critical to finding solutions to our environmental challenges. And each day, America’s oil and natural gas industry is putting that into practice. Natural gas underpins renewable development by providing baseload power for electricity generation when solar and wind facilities go offline.
Bipartisan bill would accelerate LNG export reviews . E&E News .
Texas Republican Rep. August Pfluger introduced legislation yesterday that would speed up permitting to ship liquefied natural gas to foreign nations. The "Natural Gas Export Expansion Act" would amend the Natural Gas Act so export applications are treated equally regardless of whether that country has a free trade agreement with the United States. The bill would also remove the need for prior approval for LNG exports or imports between the U.S. and Canada or Mexico.
Shale gas drillers to keep 2021 capex flat under investor focus, analysts say . S&P Global .
Industry observers are expecting shale gas producers to stick to their promise to keep capital spending restrained as investors continue to keep an eye on the sector's performance. Shale gas drillers have had a history of matching their capital spending to the strength of gas prices, but often when they exceeded guidance, their stock performance dropped as investors walked away, according to S&P Global Market Intelligence data.
Fuel for Thought: energy security omens returning to haunt oil market . S&P Global .
Energy security concerns are bubbling beneath the surface as the global oil market seems to be entering into the early stages of recovery from the pandemic. While OPEC+ can provide the necessary crude as demand recovers in the near term, there may be a lack of firepower from the rest of the oil-producing fraternity further down the line. But the recent rise in oil prices could be just what the world needs.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why is Biden so soft on Iran?
RBN likes to bring up an old classic song to tie to their opinion.
To attempt to answer your question, "Why is Biden so soft on Iran my song choice would be
"Insane in the membrane"
With all the anti-energy woke bs going on the USA will be begging Opec+ and Iran, please ship us oil.
You think with family expertise in this sector, Bidens son being on the BOD of an energy company, he could talk some common sense to the big guy. (or is it all about the bribes with them)
To attempt to answer your question, "Why is Biden so soft on Iran my song choice would be
"Insane in the membrane"
With all the anti-energy woke bs going on the USA will be begging Opec+ and Iran, please ship us oil.
You think with family expertise in this sector, Bidens son being on the BOD of an energy company, he could talk some common sense to the big guy. (or is it all about the bribes with them)