Oil may be going to $150/bbl if Russia keeps going
Posted: Fri Mar 04, 2022 2:57 pm
Hope that Russia is going to take over Ukraine quickly is fading fast. This conflict is going from Bad to Worse to Ugly quickly. Team Biden and Europe can't and won't do much to stop Putin because we are not energy independent and we need Russian oil and gas. We allowed Team Biden to screw up our energy supply.
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Notes from OilPrice.com 3-4-2022
Russia’s invasion of Ukraine has triggered arguably the wildest week in oil trading since Saddam Hussein’s attack on Kuwait back in 1990 - in fact, it was exactly 33 years ago that the oil markets were this backwardated. The risk of Russian barrels being barred from oil markets pushed prices to their highest level since 2008, with WTI touching $116 per barrel on Thursday and ICE Brent coming within touching distance of $120 per barrel. The war still rages on in Ukraine and, despite rumors reappearing about an imminent nuclear deal with Iran, there is still some work to do to finalize the nuclear covenant. As if this were not enough, renewed riots and force majeure events in Libya might trigger another civil war which would almost certainly push oil prices past the $120 per barrel next week.
OPEC+ Rubber-stamps April Production Increase. In what might be the briefest OPEC+ ministerial meeting in recent history, lasting a mere nine minutes, the oil group agreed to another 400,000 b/d monthly supply addition despite intensifying calls to produce more.
US Targets Russian Refining Sector. The Biden Administration announced another round of sanctions as it banned the export of specific refining technologies to Russia and Belarus, making it harder for both countries to modernize their downstream assets.
Germany Opposes Russia Energy Sanctions. In a refreshingly honest public utterance, Germany’s economy minister Robert Habeck stated Berlin would not support a Russian oil and gas embargo, citing potential civil unrest should fossil fuel prices go higher, with electricity prices already up 130% on the year.
Russia Seizes Ukraine’s Largest Nuclear Plant. Russian military forces attacked and seized Europe’s largest nuclear power plant, the 5.7 GW capacity Zaporizhzhia, shelling a training facility outside of the plant area, in a move that triggered another UN Security Council meeting. < This is very concerning.
US Strategic Inventories Fall to Lowest in 20 Years. As Cushing stocks continue their downward decline, crude oil held in US strategic inventories fell once again by 2.4 million barrels, dropping to a total of 580 million barrels – the lowest level since August 2002. < This is a national security risk!
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Notes from OilPrice.com 3-4-2022
Russia’s invasion of Ukraine has triggered arguably the wildest week in oil trading since Saddam Hussein’s attack on Kuwait back in 1990 - in fact, it was exactly 33 years ago that the oil markets were this backwardated. The risk of Russian barrels being barred from oil markets pushed prices to their highest level since 2008, with WTI touching $116 per barrel on Thursday and ICE Brent coming within touching distance of $120 per barrel. The war still rages on in Ukraine and, despite rumors reappearing about an imminent nuclear deal with Iran, there is still some work to do to finalize the nuclear covenant. As if this were not enough, renewed riots and force majeure events in Libya might trigger another civil war which would almost certainly push oil prices past the $120 per barrel next week.
OPEC+ Rubber-stamps April Production Increase. In what might be the briefest OPEC+ ministerial meeting in recent history, lasting a mere nine minutes, the oil group agreed to another 400,000 b/d monthly supply addition despite intensifying calls to produce more.
US Targets Russian Refining Sector. The Biden Administration announced another round of sanctions as it banned the export of specific refining technologies to Russia and Belarus, making it harder for both countries to modernize their downstream assets.
Germany Opposes Russia Energy Sanctions. In a refreshingly honest public utterance, Germany’s economy minister Robert Habeck stated Berlin would not support a Russian oil and gas embargo, citing potential civil unrest should fossil fuel prices go higher, with electricity prices already up 130% on the year.
Russia Seizes Ukraine’s Largest Nuclear Plant. Russian military forces attacked and seized Europe’s largest nuclear power plant, the 5.7 GW capacity Zaporizhzhia, shelling a training facility outside of the plant area, in a move that triggered another UN Security Council meeting. < This is very concerning.
US Strategic Inventories Fall to Lowest in 20 Years. As Cushing stocks continue their downward decline, crude oil held in US strategic inventories fell once again by 2.4 million barrels, dropping to a total of 580 million barrels – the lowest level since August 2002. < This is a national security risk!