Skip to comments.Trump's revenge: US crude oil floods European markets in blow to OPEC and Russia
Posted on 04/24/2018 7:42:20 AM PDT by afraidfortherepublic
THE United States is flooding the European markets with record amounts crude oil as US producers seize on Russia and the Organisation of the Petroleum Exporting Countries (OPEC) pact to cut output resulting in soaring oil prices.
US crude oil is seen as the cheaper option as the OPEC and Russia pact begins to bite after agreeing jointly to oil output jointly by 1.8million barrels per day (bpd) help rebalance the market and to help elevate the benchmark Brent prices.
Now, the relatively high prices brought about by that pact, coupled with surging US output, are making it harder to sell Russian, Nigerian and other oil grades in Europe, traders said.
A trader with a Mediterranean refiner, who regularly buys Russian and Caspian Sea crude and has recently started purchasing US oil. He said: US oil is on offer everywhere. It puts local grades under a lot of pressure.
In April, US supplies to Europe are set to reach an all-time high of roughly 550,000 bpd (around 2.2 million tonnes), according to the Thomson Reuters Eikon trade flows monitor.
(Excerpt) Read more at express.co.uk ...
Now THAT’S what I’m talkin’ about.
no wonder petrol is shooting up...here.......
USA - there you have it, a Man that is President and believes in business and the euro folks / customers will be happy with lower prices.
Why not flood the U.S. to deter the ever-increasing price here?
Due to good old-fashioned Capitalism, the old oil cartel doesn’t work anymore. The price controls will collapse soon enough as each of these countries start to cheat and sell at lower prices to compete with the Americans. Then we’ll have even lower prices. But if the Dems had their way and fracking was shut down, the cartel probably could have raised prices.
How is this supposed to MAGA when the little guy is getting hammered at the pump.
What little tax cut I got is long gone.
Oil is the highest matter of national security.
We obviously need it to flood our markets. Regular in Reno was $3.21/gal yesterday. Good thing I had .70 off at Smiths.
OPEC Has Already Turned to the Euro
February 18, 2004
...The source for the euro exchange rate is the Federal Reserve, and I have calculated the euro's average exchange rate to the dollar for each year based on daily data.We can see from column (4) in the above table that in 2001, each barrel of imported crude oil cost $21.40 on average for that year. But by 2003 the average price of a barrel of crude oil had risen 26.0% to $26.97 per barrel. However, the important point is shown in column (6). Note that the price of crude oil in terms of euros is essentially unchanged throughout this 3-year period.
US Imports of Crude oil (1) (2) (3) (4) (5) (6) Year Quantity (thousands of barrels) Value (thousands of US dollars) Unit price (US dollars) Average daily US$ per € exchange rate Unit price (euros)
3,471,066 74,292,894 21.40 0.8952 23.91 2002 3,418,021 77,283,329 22.61 0.9454 23.92 2003 3,673,596 99,094,675 26.97 1.1321 23.82
As the dollar has fallen, the dollar price of crude oil has risen. But the euro price of crude oil remains essentially unchanged throughout this 3-year period. It does not seem logical that this result is pure coincidence. It is more likely the result of purposeful design, namely, that OPEC is mindful of the dollar's decline and increases the dollar price of its crude oil by an amount that offsets the loss in purchasing power OPEC's members would otherwise incur. In short, OPEC is protecting its purchasing power as the dollar declines.
Do I detect a hint of sarcasm?
I want AMERICAN oil companies to supply AMERICA first so gas prices fall or at least not risel. Or is this just another way of fleecing the American taxpayer (with all the taxes attached to gasoline) while making inroads to markets abroad? Just ridiculous.
Having to spend billions to defense to defend the likes of the Saudis, just to ensure the free flow of oil, when we have enough here to supply us and our allies, is insane.
Our top national security priority should be to have total energy independence.
Add 1 to 2 million bpd to our 10 million if Trump can restart Alaska production.
The net result is more barrels available for purchase on the market which means lower prices for everyone.
Time for us to withdraw from the Middle East. We need to get the Canadian pipeline built and frack and drill some more but were well on the way to energy independence. Let the Yurps and China pay the price in blood and treasure to keep middle eastern oil flowing.
Well, it’s just business. The Markets are working.
Americans can sell crude at a higher price to Europeans than they can get for the same crude in America. The higher price is still below that of the Russian or OPEC crude.
This slight imbalance tightens supply somewhat within America and the refined products price increases some.
The goal is to make a profit, not to have cheap gas