HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Trump's revenge: U.S. oil...

Mon Apr 23, 2018, 09:27 AM

Trump's revenge: U.S. oil floods Europe, hurting OPEC and Russia

Source: Reuters




APRIL 23, 2018 / 8:52 AM / UPDATED 32 MINUTES AGO

Olga Yagova, Libby George

MOSCOW/LONDON (Reuters) - As OPEC’s efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits - and flooding Europe with a record amount of crude.

Russia paired with the Organization of the Petroleum Exporting Countries last year in cutting oil output jointly by 1.8 million barrels per day (bpd), a deal they say has largely rebalanced the market and one that has helped elevate benchmark Brent prices LCOc1 close to four-year highs.

Now, the relatively high prices brought about by that pact, coupled with surging U.S. output, are making it harder to sell Russian, Nigerian and other oil grades in Europe, traders said. “U.S. oil is on offer everywhere,” said a trader with a Mediterranean refiner, who regularly buys Russian and Caspian Sea crude and has recently started purchasing U.S. oil. “It puts local grades under a lot of pressure.”

U.S. oil output is expected to hit 10.7 million bpd this year, rivaling that of top producers Russia and Saudi Arabia.






Read more: https://www.reuters.com/article/us-usa-oil-europe/trumps-revenge-u-s-oil-floods-europe-hurting-opec-and-russia-idUSKBN1HU1QK

10 replies, 2365 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 10 replies Author Time Post
Reply Trump's revenge: U.S. oil floods Europe, hurting OPEC and Russia (Original post)
DonViejo Apr 2018 OP
bucolic_frolic Apr 2018 #1
mountain grammy Apr 2018 #2
IronLionZion Apr 2018 #3
BumRushDaShow Apr 2018 #6
BumRushDaShow Apr 2018 #4
dembotoz Apr 2018 #5
Cryptoad Apr 2018 #7
dbackjon Apr 2018 #8
Raven123 Apr 2018 #9
Nitram Apr 2018 #10

Response to DonViejo (Original post)

Mon Apr 23, 2018, 09:31 AM

1. This was going on during the Obama Administration

We didn't drill all these oil wells and frack our way to success since Trump took office

Massive numbers of wells were shutdown when oil prices tumbled into the $30s, circa 2013-5 or so

And why is gas $3 a gallon here? Because we're exporting it all

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bucolic_frolic (Reply #1)

Mon Apr 23, 2018, 09:41 AM

2. Exactly!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to bucolic_frolic (Reply #1)

Mon Apr 23, 2018, 09:43 AM

3. Yet freepers claimed Obama was killing off oil jobs

when oil got much cheaper and North Dakota cut production

American gas prices are still much cheaper than most of the world. It makes sense to export to Europe and Asia. Japan has been buying Alaskan oil for a long time.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to IronLionZion (Reply #3)

Mon Apr 23, 2018, 09:55 AM

6. It's also because

we didn't have as many refineries that could handle the kind of crude coming out of our fracked sites, as they could mainly only handle the imported heavy crude. There are some reconfigurations going on at some refineries to deal with that.

The U.S. oil industry has changed dramatically in the past decade. Driven by technological advancements in drilling, crude oil production has reached new record highs and currently hovers at around the 9 million barrels-per-day (b/d) mark, up roughly 70 percent from 2007.

But nearly three-quarters of oil production in the U.S. is light sweet crude oil or condensate. That is the kind of crude oil a majority of U.S. refiners typically do not consume. Rather, Gulf Coast refiners, whose combined capacity of 9.6 million b/d makes up more than half of the U.S. total, are still largely consumers of medium-to-heavy sour crude.

U.S. refineries process a wide range of crude oil grades, and some have been adjusting their crude slates in recent years to take advantage of the growing supply of light sweet crude in North America.

Midwest and Gulf Coast refiners have invested in complex units designed to process medium-to-heavy sour crude oil efficiently. These refineries are optimally designed to run heavier crudes, and many continue to do so because any potential improvement in the value of the refined product slate from running light sweet crude can often be negated by the higher cost of light crudes compared with heavy crudes.

http://thehill.com/blogs/pundits-blog/energy-environment/324971-light-sweet-or-heavy-sour-oil-industry-needs-new

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Mon Apr 23, 2018, 09:44 AM

4. This means

that it will probably trigger the speculators to get back in and run it back up to and over $100 bbl.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Mon Apr 23, 2018, 09:47 AM

5. reminds me of stories of starving nations where food crops are set for export...gas up 20 cents/gal

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Mon Apr 23, 2018, 10:07 AM

7. Shew wood like to have some that Obama $1.50/gal gas again!

Here in Dumbfuckistan , gas prices have been increasing steadily since Trump was elected...Its a economic time bomb,,,,,,,,,,,,,,,,, tick , tick,, tick

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Mon Apr 23, 2018, 01:15 PM

8. Then why are gas prices skyrocketing?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to dbackjon (Reply #8)

Mon Apr 23, 2018, 01:20 PM

9. I have the same question. The answer is they came make more $$$ shipping it

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Raven123 (Reply #9)

Mon Apr 23, 2018, 02:48 PM

10. The oil market is global - it flows to the highest bidder.

That's why all this talk of oil pipelines bringing US jobs and energy independence is total BS.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread