The White House ruled out banning imports from Russia despite calls from House Speaker Nancy Pelosi earlier in the day as Russian President Vladimir Putin continues his assault on Ukraine. Ms Pelosi told reporters on Thursday that she would support banning oil imports from Russia when she was asked about rising gas prices and whether she would support drilling for oil on public lands. “I’m all for that. Ban it. Ban the oil coming from Russia,” she told reporters as concerns rise about rising gas prices in response to the crisis in Ukraine. But White House Press Secretary Jen Psaki ruled out such a measure, saying that President Joe Biden’s objective is to maximise pain on Mr Putin’s regime while minimizing the effects of the conflict to Americans. “We don’t have a strategic interest in reducing the global supply of energy,” she said. “And that would raise prices at the gas pump for the American people around the world because it would reduce the supply available. It’s as simple as less supply raises prices.” Ms Pelosi’s words come as Democrats are trying to stave off concerns that the assault on Ukraine would lead to higher gas prices. In his State of the Union address, President Joe Biden mentioned that the Union States would release 30 million barrels from the nation’s strategic petroleum reserves. Ms Pelosi said that the price of gas is directly related to the crisis in Ukraine. “Doesn’t mean it can’t go up and down without a Russian diabolical intervention into a sovereign country but it is related to that,” she said. Ms Pelosi said she heard a parliamentarian from Ukraine saying the country was under assault while people elsewhere are complaining about the price of gas. “Well, we don’t want people to pay a little bit more for the price of gas,” she said. Many Americans were already feeling a pinch at the gas pump beforehand and some have hinted at a gas tax holiday. But Ms Pelosi said it was not clear that would lower prices for consumers. “And that sounds good, but do you know that guarantee that the oil companies pass that reduction onto the consumer and it’s very hard to write a bill that requires them to pass it on to the consumer,” she said. “So I think if we can have a holiday that guarantees that the consumer benefits rather than more profits for the oil companies, that can be a path that we can take,” she said. NN: Russian oil Biden wants to flow free. It American oil he is hell bent on disrupting…….. Go figure!
Yacht seized as U.S. ramps up oligarch sanctions so Putin ‘feels the squeeze’
Talks end, Ukraine disappointed with results
Ukraine says that a second round of ceasefire talks with Russia did not yield the results Kyiv hoped for, but the sides had discussed humanitarian corridors and agreed to speak again.
Ukraine says that a second round of ceasefire talks with Russia had not yielded the results Kyiv hoped for, but the sides had discussed humanitarian corridors and agreed to speak again. “To our great regret, we did not get the results we were counting on,” Ukrainian presidential adviser Mykhailo Podolyak said. Both sides said they wanted a possible ceasefire for evacuating civilians through humanitarian corridors. Russia’s Foreign Minister Sergey Lavrov had said prior to the Thursday meeting that Moscow was ready for talks to end the fighting in Ukraine but would continue to press its effort to destroy Ukraine’s military infrastructure. The second round of face-to-face discussions took place on the Belarus-Poland border after initial talks on Monday ended without agreement. Ukrainian Foreign Minister Dmytro Kuleba has said while his country was ready for talks to resume, Russia’s demands hadn’t changed and that he wouldn’t accept any ultimatums. Russian officials said Moscow’s demands include Ukraine’s recognition of Russia’s hold on Crimea, independence for the separatist-controlled areas of Donetsk and Luhansk, as well as “de-militarisation” and “de-nazification”. NN: Despite the spin… the truth is Ukraine is losing the war…. its not even close to a fair fight.
Oil prices hit multi-year highs as supply tightens
Support also came from U.S. crude stockpiles at multi-year lows, helping to lift Brent crude futures as high as $119.84 a barrel for the highest level since 2012.
By 1024 GMT the contract was up $2.18, or 1.9%, at $115.11 a barrel.
Brent has jumped by about 37% in the past 30 days and the contract’s six-month spread hit a record high on Thursday at more than $21 a barrel, indicating very tight supplies.
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The gains followed a fresh round of U.S. sanctions that target Russia’s oil refining sector, raising concerns that Russian oil and gas exports could be targeted next.
Russia competes with Saudi Arabia for the title of biggest crude oil and refined oil products exporter, with shipments of more than 7 million barrels per day (bpd), about half of which go to Europe.
While wielding economic sanctions to try to make Russia call off its invasion of Ukraine, Washington has so far stopped short of targeting Russia’s oil and gas exports, weighing the impact on global oil markets and U.S. energy prices.
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“We expect that Russian oil exports will plunge by 1 million bpd from the indirect impact of sanctions and voluntary actions by companies,” said Rystad Energy CEO Jarand Rystad.
“Oil prices are likely to continue to climb – potentially beyond $130 per barrel.”
Australia’s ANZ raised its short-term target for oil to $125 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, collectively known as OPEC+, decided to maintain an increase in output by 400,000 bpd in March despite surging prices, snubbing calls from consumers for bigger increases.
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The head of the International Atomic Energy Agency (IAEA) will visit Tehran on Saturday, Iranian news agency Nournews reported, suggesting this could help pave the way to a revival of Iran’s 2015 nuclear agreement with major powers.
Meanwhile, U.S. oil inventories continued to decline. Tanks at the key Cushing crude hub in Oklahoma were at their lowest since 2018, while U.S. strategic reserves dropped to their lowest in nearly 20 years.
(Additional reporting by Florence Tan Editing by David Goodman)
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End of Oligarch Era Nears
Roman Abramovich is selling Chelsea Football Club after almost two decades of ownership. The billionaire’s ties to Russia are being scrutinized. He is seeking 3 billion-pounds from the sale of the football club and has said that net proceeds will go to a foundation for Ukraine war victims. The billionaire hasn’t been personally sanctioned by the U.K., but it highlights the global scramble by oligarchs to keep assets from being frozen and seized by international governments after sanctions were announced.
Russia now ‘utterly uninvestable’ – Schroders CEO says
LONDON (Reuters) – Russian stocks and bonds are now “in the realms of utterly uninvestable,” the chief executive of Schroders (LON:) Peter Harrison told Reuters on Thursday, as Western sanctions squeeze Russia’s economy after its invasion of Ukraine. Russia’s Ukraine invasion has roiled markets worldwide, sending oil prices rocketing, boosting commodity stocks and triggering a crash in the Russian rouble and share markets as sanctions bite. The invasion will “fundamentally change the nature of Europe for a very long time to come,” Harrison said, adding that the British money manger’s combined holdings of Russia, Ukraine and Belarus-exposed securities amount to less than 0.1% of Schroders’ total assets. Schroders in common with other asset managers has pending sell orders on Russian stocks, Harrison said, with investors currently unable to complete such sales because the Moscow exchange is suspended. Harrison said the situation for foreign investors is likely to deteriorate further in the coming days. “My anticipation would be that sanctions get stronger, and the cumulative impact of running down reserves will be felt ever more acutely, so things that are seemingly difficult now will feel impossible in a week’s time,” he said, referring to Russia’s currency reserves. Harrison’s remarks came as Schroders separately reported a 23% jump in annual profit on Thursday, helped by stronger performance fees and growing client demand at its mutual funds division.
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Italy Halts Funding For $21 Billion Arctic LNG 2 Project
ARCTIC LNG-2: CONSTRUCTION OF THE WORLD’S LARGEST FLOATABLE REINFORCED CONCRETE PLATFORMS CONTINUES
Italy has halted its share of the financing for the Arctic LNG 2 project, as Western companies and countries continue to sell their stakes in Russian energy projects, even absent of energy-related sanctions. Tankers carrying Russian LNG to Europe have changed course, oil majors such as Shell, BP, and Exxon have pulled out of Russian oil projects at great expense, and now, Italy has suspended its financing for the Arctic LNG 2 project, owned by Russian gas producer Novatek. The project, estimated at $21 billion, is just one of the many projects that is losing foreign backing, even though Russia’s energy exports have thus far been exempt from sanctions. Italy, fearing more sanctions, is now rethinking its loan to the project, which some estimate at $560 million. Italy had only recently decided to help finance the project. The loan for the project had not yet been dispersed. The agreement to finance part of the project, however, remains intact. The latest move highlights just how much of a pariah Russia has become on the world stage after its invasion of Ukraine, and could put a damper on some of Russia’s energy projects. Arctic LNG 2 was destined to be up and running by 2023, reaching full capacity by 2026. Arctic LNG 2 is expected to produce 20 million tonnes of LNG annually. In addition to Russia’s Novatek, Arctic LNG 2 shareholders include TotalEnergies, CNPC, CNOOC, and Japan Arctic LNG. TotalEnergies, with a 10% stake, is one European oil major that has not decided to quit its Russian operations. The Arctic LNG 2 project was already controversial even before Russia’s invasion of Ukraine, with the European Parliament stating that it was concerned about EU members’ support of the project because it was not compatible with climate targets. NN: They are throwing out the baby with the bath water. WHY WHY WHY WHY WHY The stupids are running the show. I followed for years this great Great GREAT project. The Russians achieved great strides in achieving their energy potential. Ten years of development that made them the greatest energy producer in the world has been destroyed by the Ukraine… I have been their its a ever loving shit hole…. Why anyone wold want the place is beyond me…….. Other then some of the most beautiful women in the world, A hottie haven, it is a nothing burger.. Putin lust for power and stupid people he has surrounded himself with have given bad advise…. As the major energy supplier of the world he got the whole enchilada. What he created with his hand he is now destroying with his foot…… The world will not make the transition to renewables without the bridge of natural gas…… IDIOTS!!
US closes higher, Dow gains over 590 pts
Major stock markets in the United States closed higher on Wednesday, with the Ukraine crisis in the center of attention. Investors continued monitoring the situation in Europe and the effect of sanctions on Russia and the global economy. Earlier it was known that senior Chinese officials asked top Russian officials not to invade Ukraine before the Winter Olympics in Beijing. At the same time, the US government targeted Russia’s oil refining and technology in the latest round of sanctions. The Dow Jones gained 1.79% at 4:00 pm ET or 595 points, with Caterpillar Inc up by 5.35%. The Nasdaq 100 added 1.70%, while Micron Technology improved by 8.16%. The S&P 500 rose 1.86%, as EPAM Systems Inc grew by 15.97%. NN: A bottom is in…. this next rally is a shorting opportunity
Brent Holds Above $110 As EIA Confirms Crude Draw
Crude oil prices remained elevated today after the U.S. Energy Information Administration reported crude oil inventories had shed 2.6 million barrels in the week to February 25. This compared with a build of 4.5 million barrels for the previous, which also failed to reverse the direction of oil prices as it was reported a day before the Russian invasion of Ukraine when the heightened geopolitical tensions in the region had already pushed prices higher. The EIA also reported a draw in gasoline inventories and a decline in middle distillate stocks. In gasoline, the authority estimated an inventory decline of 500,000 barrels for the last week of February, with production seen at 9.3 million bpd. This compared with a gasoline stock decline of 600,000 barrels for the previous week and production of about 9.3 million bpd, slightly less than last week’s. In middle distillates, the EIA estimated an inventory draw of 600,000 barrels for the week to February 25, with production averaging a bit over 4.7 million bpd. This compared with a middle distillate inventory draw of 600,000 barrels for the previous week and production of 4.7 million bpd in the last week of February. Brent crude hit $111 per barrel earlier today, with West Texas Intermediate at over $109 per barrel amid the growing chaos on energy markets as sanctions against Russia caused the pullout of major Western energy companies from the country and traders shunning Russian oil cargos. In a tight supply situation, there has only been one way prices could go, prompting the U.S. to urge its allies and fellow members of the International Energy Agency to co-ordinate a release of stockpiled oil to weigh on benchmarks. The agreement was reached on Tuesday, when several IEA members led by the U.S. said they would release a combined 60 million barrels of crude. According to analysts, however, the move is unlikely to move international prices all that much, based on how the previous release of crude from strategic reserves failed to accomplish its goal of reducing oil prices
Biden Open to Sanctions on Russian Oil, Gas: Ukraine Update
President Joe Biden, who used his first State of the Union address to label Vladimir Putin a “dictator,” signaled Wednesday that he’s open to imposing restrictions on oil and gas imports to the U.S. Russia’s military advance continued, with its Defense Ministry saying it captured the Black Sea port city of Kherson as units moved further into southern Ukraine. A top Russian official warned that increased weapons supplies to Ukraine could raise the risk of an inadvertent conflict with NATO. For its part, Ukraine said a second round of talks were possible as early as Wednesday. Russian markets continued to be roiled, with investors scrambling to find out whether the country’s bonds are in default. European natural gas hit a new record, alongside soaring prices for wheat and corn.
Key Developments
- Commodities Hit New Highs as Traders Shun Russian Purchases
- Russian Markets Break Down With Cash Frozen at the Border
- Russian Default Angst Lingers Despite Ruble Bond Coupon Payment
- Fog of Cyberwar Grips Ukraine and Russia With Only Bad Outcomes
- Ukraine to Hike Interest Rates Sharply in Face of Russia War
- U.S. Task Force to Target Oligarchs’ Assets
The U.S. Justice Department announced details of a new task force designed to enforce sanctions and export restrictions and to seize luxury assets belonging to Russia’s wealthiest citizens. The “KleptoCapture” task force will gather experts in sanctions and export control enforcement, anti-corruption, asset forfeiture, anti-money laundering, tax enforcement, national security investigations, and foreign evidence collection, DOJ said in a statement on Wednesday. “To those bolstering the Russian regime through corruption and sanctions evasion: We will deprive you of safe haven and hold you accountable,” Deputy Attorney General Lisa Monaco said. “Oligarchs be warned: we will use every tool to freeze and seize your criminal proceeds.” Biden Says U.S. Is Open to Banning Russian Oil, Gas.
President Biden said he’s open to implementing a ban on importing Russian oil and gas, a move that may force up already high prices for American consumers.
“Nothing is off the table,” Biden said as he departed the White House for a trip to Wisconsin. The leaders of Estonia, Latvia and Lithuania called on the public not to punish their countries’ ethnic-Russian minorities for the Kremlin-led invasion of Ukraine. Estonian Prime Minister Kaja Kallas warned against stoking tensions with Estonia’s large Russian-speaking population, saying “this is Putin’s war and the Russian people should not be punished for it.” Lithuanian Prime Minister Ingrida Simonyte called her country’s Russian-speaking residents patriots and Latvian Prime Minister Krisjanis Karins said “if we start to turn against the Russians as a people, we will be shooting ourselves in the foot.” The European Union is looking at ways to limit access to its ports and waters for Russian vessels, according to people familiar with the discussions, who asked not to be identified because the talks are private. The EU’s trade chief, Valdis Dombrovskis, told European lawmakers on Monday that there was “some work ongoing” to explore sanctions on Russia’s maritime sector, without giving any details as these measures are not part of his dossier. European natural gas prices eased after soaring as much as 60% and crude oil topped $110 a barrel amid concerns over Russian supply. OPEC and its allies essentially disregarded the issue at a meeting Wednesday, with delegates saying there was no mention of Russian oil supplies being disrupted. The risks of inadvertent conflict between Russia and NATO are rising with increased supplies of weapons to Ukraine by alliance members, Deputy Foreign Minister Alexander Grushko said, according to Interfax. “There’s no guarantee that there won’t be some kind of incident, there’s no guarantee that an incident might not escalate,” Grushko told state television.