Situation
The development of vast oil and gas reserves unconventional le has allowed the United States to approach self-sufficiency, but still imports to meet domestic demand and to supply old refineries, which need to mix local crudes with others with a higher sulfur content. Of the total foreign purchases of oil and refined products of the great power, only 8% – 672,000 barrels per day on average – came from Russia last year, noted The Wall Street Journal citing official data. Canada, Mexico and Saudi Arabia, among other countries, are more important suppliers. Either way, the impact on domestic prices will be unavoidable.
Biden – which risks angering consumers more than they already are over inflation at a 40-year high shortly before the November legislative election – runs from behind in the race started by Putin to subjugate Ukraine. the democrat act under pressure of a public opinion that cannot reconcile its denunciation of Russia’s abuses with actions that have so far failed to break the head of the Kremlin. It must be remembered that the American affirmed until a few days ago that he could not touch the energy market and sincerely asked the oil companies of his country not to take advantage of the crisis to respond with their pockets by raising prices. The desperateness of the measure reflects its position in the crisis.
Volodymyr Zelensky
Dilemma
the same peer pressureskilfully exploited by the President of Ukraine Volodymyr Zelensky, ferments in Western Europe, but when it comes to Russian hydrocarbons, the region oscillates between rejection of the embargo and doubt. Indeed, 30% of its consumption depends on Russian oil and gas, 40%, figures that rise above 60% in the case of Germanya country that cannot afford to leave its homes and industry without heat and light.
However, the path already has a certain direction: The European Commission revealed yesterday a plan to reduce dependence on Russian gas by two thirds this year.
Boris Johnson He understands his European peers, but sticks to Washington: It will stop importing crude oil from Russia at the end of the year, something relatively easy given that the United Kingdom only buys from that country the equivalent of 5% of its internal consumption. Meanwhile, the private sector is leading: the Shell company announced yesterday the “immediate halt of all cash purchases” and promised to close its gas stations and the production of lubricants and jet fuels in Russia.
Boris Johnson
Photo: News It’s Euro
Warning
Anticipating Biden’s move, Russian deputy prime minister, Alexandr Novak, warned early that, in the event of a ban, his government could close the gas pipelines that feed Western Europe. Following the American move, will Moscow trigger total disaster or reserve its own “nuclear option” to deter the Europeans?
The growth of Russia to third place in the international oil marketwith an extraction of 11 million barrels per dayit was not only due to their huge reserves. It was also the product of the sanctions that the United States and its allies imposed on oil from Venezuela and Iran. These are the cards that Putin also plays in this dramatic TEG.
Russia Europe energy
Courtesy: Infototal.es
The Venezuelan letter
Willing to swallow any toad in order to avoid humiliation in the European theater, Biden sent a delegation to Caracas last weekend composed of his main adviser for the region, Juan González, the retired ambassador to Colombia James Story and his adviser for hostage affairs Roger Carstens. Even though after meeting with Maduro They brought a candy to Juan Guaidó, These revealed with their presence in Miraflores who the United States really considers, chitchat aside, president of Venezuela.
Maduro is excited about an easing of the sanctions that weigh on his Government and his country, but it is little that can offer to the US offensive to increase oil supply. His mismanagement of PDVSA and, decisively, the US sanctions themselves mean that the production of that country, today of 800,000 barrels per day, can stretch in a matter of a few months to a million at mostexperts say. In addition, its financial, military and political dependence on Russia has become maximum in these years of Western punishment.
Nicholas Maduro
Courtesy: @NicolasMaduro
nuclear danger
In parallel, the Iranian regime relaxed its position in the nuclear negotiations in Vienna, designed to slow down –hardly frustrate– their progress towards “the bomb”, a real one in this case. The detail is that Iran is negotiating with the 5+1 Group, made up of the permanent members of the UN Security Council and Germany. Among the first is, of course, Russia, which today has no incentive to help the West in this urgent matter. At, Biden proposes and Putin disposes, but it will be necessary to see if the latter can withstand so much economic headwind –which will have a social correlate–. history proves that no regime, not even the Soviet, has been impregnable.
Source: Ambito
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