OPINION REVIEW & OUTLOOK
OPEC, Biden and Gas Prices
The President wants the cartel to pump more oil, but the U.S. to pump less.
By The Editorial Board
July 6, 2021
As cognitive dissonance goes, this is a classic. President Biden’s explicit policy goal is to reduce U.S. oil and gas production, limiting the global supply of fossil fuels in the name of fighting climate change. Yet his Administration is now imploring the OPEC oil cartel to pump more oil so U.S. gasoline prices don’t rise more than they already have on Mr. Biden’s watch.
Oil prices climbed to a six-year high on Tuesday after the Organization of the Petroleum Exporting Countries and Russia failed to agree on increasing production quotas. Last spring OPEC slashed production quotas after crude prices plunged to $20 per barrel amid economic lockdowns and a price war between Saudi Arabia and Russia.
But energy demand has snapped back in much of the world as Covid-19 vaccines roll out, governments ease lockdowns, and freight shipments surge. U.S. petroleum consumption is now roughly where it was at this time in 2019. OPEC estimates that oil demand in industrialized countries will increase by 2.7 million barrels a day this year.
A subscription is required to read the entire article… But the first three paragraphs tell the story. The Oil Price Dot Com version doesn’t require a subscription:
Biden Urges OPEC+ To Raise Output Amid Soaring Crude Prices
By Irina Slav – Jul 06, 2021
Saudi Aramco has raised the August official selling prices of crude to Asia, as the oil market tightens, sparking fears of another oil price war and prompting the Biden administration to call on OPEC to settle its internal differences and start bringing more oil to markets, Bloomberg has reported, citing administration insiders.
Aramco has set the August OSP for Arab light at $2.70/barrel, up 80 cents per barrel from July’s price, Reuters reports, while the OSP to the United States was set up 20 cents a barrel for August.
Rising oil prices and pain at American gas pumps have prompted Biden to step into the fray.
About that Russia collusion thingy…
As Biden seeks to limit U.S. oil production, reliance on Russian imports rises
Bethany Blankley | The Center Square contributor Jun 18, 2021
(The Center Square) – Within months of President Joe Biden halting the Keystone Pipeline, pausing new oil and gas leases on federal lands, and imposing further restrictions on U.S. oil companies, U.S. oil imports from Russia set a new record in March.
According to International Energy Agency, U.S. imports of crude oil and petroleum products from Russia reached 22.9 million barrels in March, the highest level since August 2010. They had reached over 25 million barrels in April 2009.
Crude oil imports from Russia in March stood at 6.1 million barrels, making Russia the third-largest oil exporter to the United States.
In just six months, the occupier of the White House, has delivered energy dominance… Russian energy dominance:
OPINION Updated on June 14
Russia’s Putin counts Biden as oil friend as US falls behind
Russia’s exports of oil to U.S. are hovering at all-time high
By Phil Flynn FOXBusiness
All policies implemented by the Biden administration have created jobs, prosperity and influence for Russia’s energy sector. This has come at the expense of U.S. producers and consumers who are now paying on average over $3 per gallon at the pump, per AAA.
While Biden talks tough ahead of a June 16 summit with Putin, calling on him to act against the Russian ransomware criminals that have attacked our energy and food chain, via Colonial Pipeline and JBS Foods, his policy actions have only rewarded Russia.
Phil Flynn is senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world’s leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at [email protected].
Of course… While the US oil & gas industry isn’t thrilled with Biden’s moronic policies… >$70/bbl oil and >$3.50/mcf natural gas prices are a decent consolation prize… Thanks Joe!