• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 4 hours Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 4 hours America's pandemic dead deserve accountability after Birx disclosure
  • 3 mins Putin blocks Ukraine access to Black Sea after Joe blinks
  • 2 hours Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 1 day U.S. Presidential Elections Status - Electoral Votes
  • 5 days Joe Biden's Presidency
  • 18 hours Fukushima
  • 1 day CO2 Mitigation on Earth and Magnesium Civilization on Mars – Just Add Water
  • 18 hours Biden about to face first real test. Russia building up military on Ukraine border.
  • 4 days New Chinese Coal Plants Equal All those in U.S.A

Breaking News:

Tesla Crash In Texas Leaves 2 Dead

Ross McCracken

Ross McCracken

Ross is an energy analyst, writer and consultant who was previously the Managing Editor of Platts Energy Economist

More Info

Trump’s Gunboat Diplomacy

Washington’s announcement that it will not extend its sanctions waivers for key importers of Iranian oil - China, India, Turkey, Japan and South Korea - raises the geopolitical stakes in the oil market and beyond.

While last week’s column argued - wrongly - that the waivers would most likely be extended, the view that oil price risks were weighted to the upside now looks something of an understatement.

Washington’s decision to engage in what is, in effect, gun boat diplomacy will have both short and long-term consequences.

Oil balance

The immediate impact was a $2/barrel jump in crude prices. Whether this is sustained or extended now depends critically on two factors: the degree to which importers of Iranian crude comply with the threat of sanctions; and the speed with which Saudi Arabia and other producers can ramp up production to address any shortfall.

Iran is currently estimated to be exporting just shy of 1 million b/d of crude, primarily to China, India and Turkey. Given the sharp cuts in Saudi output since the end of last year and spare capacity existing prior to that, the Kingdom should be able to provide the volumes required to replace lost Iranian barrels.

Moreover, Washington’s decision, with Saudi support, represents a green light for all producers to end restraint and produce whatever they can. Some have no capacity to do so, while for others – Venezuela and Libya – there is a real possibility…




Oilprice - The No. 1 Source for Oil & Energy News