Home » Posts tagged 'iran sanctions'

Tag Archives: iran sanctions

Olduvai
Click on image to purchase

Olduvai III: Catacylsm
Click on image to purchase

Post categories

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai III: Cataclysm
Click on image to purchase

Trump May Tap Up To 30MM Barrels From Oil Reserve To Halt Rising Gas Price

Having already yelled at OPEC on several prior occasions on Twitter with demands for Saudi Arabia and the rest of the OPEC cartel to boost production in order to push oil – and gasoline – prices lower…

… only to realize that the amount of needed incremental output is next to impossible to achieve when considering the amount of Iran exports that will be curbed on November 4 when the Iran sanctions kick in officially, Trump has been left with two choice: ease off the Iran sanctions and implement them more gradually, or release oil from the US Strategic Petroleum Reserve.

And now, with oil prices continuing to rise and pushing the price of gasoline to levels not seen in 4 years, at a critical time with November mid-term elections fast approaching, Trump appears to have decided on the latter, and is actively considering tapping into the nation’s emergency crude oil reserve, Bloomberg reported citing two people “familiar with the situation.”

While no decision has been made yet to release crude from the 660-million-barrel SPR stockade, options under review range from a 5-million-barrel test sale to a larger release of 30 million barrels. An even larger release could be possible it it were to be coordinated with other nations.

For Trump, the magic number appears to be $3 per gallon on the national level; every time regular gasoline nears that round number, Trump has been quick to voice his displeasure.

“Oil prices are too high, OPEC is at it again. Not good!” he said on Twitter last month. On the Fourth of July, Trump tweeted: “The OPEC Monopoly must remember that gas prices are up & they are doing little to help. If anything, they are driving prices higher as the United States defends many of their members for very little $’s. This must be a two way street. REDUCE PRICING NOW!”

…click on the above link to read the rest of the article…

What’s Wrong With the United States?

What’s Wrong With the United States?

Photo source jqpubliq | CC BY 2.0

Despite the myth perpetrated by United States spokespersons, the country is not, and never has been, a beacon of peace and freedom, the ‘land of the free and the home of the brave’, or a democracy that is the envy of the word. It is, and always has been, a racist, imperialist society, an oligarchy and, as the Reverend Dr. Martin Luther King, Jr. once said, the greatest purveyor of violence in the world.

Today it is living up to violent, bloody truths that comprise its existence. We will look at just a few of the circumstance today that embody that violence.

+ The U.S. has just violated an international treaty, by withdrawing from the Joint Comprehensive Plan of Action (JCPOA), an agreement also signed by Russia, China, England, France, Germany, the European Union and Iran. The purpose of this agreement was to regulate Iran’s nuclear ambitions (such as they are), in return for the lifting of sanctions imposed upon that country. The JCPOA was signed by the U.S under President Barack Obama, but it was not an agreement between him and the other nations; it was a binding agreement under international law. By violating it, the U.S. has send a strong message to the world that its word cannot be relied upon; has betrayed some of the country’s closest and oldest allies, and may even sanction them if they continue to do business with Iran, which each of the other signatories says they will do, since Iran is and has been in complete compliance with the agreement.

Additionally, the U.S., which has been at war for 225 years of its 242 year history, and which is currently bombing seven countries and supporting terrorist groups in Syria, accuses Iran, which has not invaded another country since 1798, of being the world’s foremost sponsor of terrorism. This is Orwellianism at its best.

…click on the above link to read the rest of the article…

Oil Jumps Above $80 For The First Time Since Nov. 2014

Two weeks after Saudi Arabia said it was targeting $80/bbl oil, this morning Riyadh got its wishes early when Brent hit the Saudi target, jumping as much as 1% to $80.18, following the latest drop in U.S. crude inventories and as traders continued to fret about the consequences of renewed sanctions on Iran.

This was the highest price since November 2014.

Today’s jump followed a reported from Goldman titled simply “The case for commodities strengthens ” according to which America’s surging shale output won’t be able to replace the potential drop in Iranian oil shipments after the U.S. reimposed sanctions on OPEC’s third-largest producer.

US shale cannot solve the current oil supply problems. Even if only 200-300 kb/d of Iran exports are at risk by year-end, OPEC is not likely to preempt this loss, only react to it. Further, any response will reduce spare capacity in an increasingly tighter market. The erosion in Venezuela and Angola oil output is accelerating at the same time ex-US growth is stalling. Only the US has seen supply surprises, but is facing growing pains with filled pipeline capacity, constraining US growth into 2019.

Goldman also noted that physical markets continued to ignore growth concerns – just yesterday the IEA warned that the surge in prices will kill demand – rising rates and USD.

Only financial markets care, which is why only gold has traded substantially lower with the risk-off sentiment. Growth concerns will likely prove temporary, realized demand remains robust and OPEC has never been able to catch late-cycle demand growth to replenish inventories before a recession occurs. And even if growth were to decelerate further, it would take global GDP growth collapsing to 2.5% yoy to simply balance the oil market! We recommend not ‘riding this one out.’

…click on the above link to read the rest of the article…

Europe: National Sovereignty vs. International Conquest, at Stake over Iran

Europe: National Sovereignty vs. International Conquest, at Stake over Iran

Europe: National Sovereignty vs. International Conquest, at Stake over Iran

Europe now faces its ultimate ideological fork-in-the-road, which it has thus far ignored but can no longer ignore: They need to decide whether they seek a world of nations that each is sovereign over its own territory but over no other (and this would not be a world at war); or whether they seek instead a world in which they are part of the American empire, a world based on conquests — NATO, IMF, World Bank, and the other US-controlled international institutions — and in which their own nation’s citizens are subject to the dictatorship by America’s aristocracy: the same super-rich individuals who effectively control the US Government itself (see this and this — and that’s dictatorship by the richest, in the United States).

Iran has become this fateful fork-in-the-road, and the immediate issue here is America’s cancellation of the Iran nuclear deal that America had signed along with 6 other countries, and America’s consequent restoration of economic sanctions against Iran — sanctions against companies anywhere that continue trading with Iran. First, however, some essential historical background on that entire issue:

The US aristocracy overthrew Iran’s democratically elected Government in 1953 and imposed there a barbaric dictatorship which did the bidding of the US and allied aristocracies, by installing the Pahlavi Shah there, just as they had earlier, in 1932, installed the Saud King in Saudi Arabia — which land never ever had known democracy. As Wikipedia says of Ibn Saud, who became King in 1932, “After World War I, he received further support from the British, including a glut of surplus munitions. He launched his campaign against the Al Rashidi in 1920; by 1922 they had been all but destroyed,” with Britain’s help. Similarly, the US and its British Imperial partner installed Pahlavi as Iran’s Shah in 1953. This was done by US President Dwight David Eisenhower.

…click on the above link to read the rest of the article…

Iran Sanctions Threaten The Petrodollar

Iran Sanctions Threaten The Petrodollar

Iranian oil

One country must be quite pleased with the prospect of new U.S. economic sanctions against Iran’s oil industry, and this country is the largest oil importer in the world, and is Iran’s largest single oil client.

When China launched its long-awaited yuan-priced oil futures last month, it did so as part of its strategy to expand the international clout of its currency. Now, with U.S. sanctions on Iran’s horizon, the yuan could further advance down this road, as Beijing has vowed to continue buying Iranian crude, which will most likely be paid in yuan.

Iran should be on board with the idea. The country has made it clear even before President Trump’s withdrawal from the JCPOA that it would prefer to settle its trade in currencies other than the greenback, to which it has limited access.

Last month, Tehran and Moscow inked a deal to conduct all its business in goods rather than in dollars as both seek to reduce the influence of the U.S. currency on their economies. A month earlier, Iran banned settlement of import deals in dollars and ditched the currency in favor of the euro in reporting its forex reserves. In other words, Iran will be more than happy to take in Chinese yuan for its crude, or alternatively, to apply some oil-for-goods exchange scheme similar to the one agreed with Russia.

The point is that those one million barrels daily that new Iran sanctions are supposed to take off the market may not in fact be taken off the market. Analysts are citing this figure because that’s how much Iranian crude left global markets during the period when both the U.S. and the EU had sanctions in place against Tehran.

…click on the above link to read the rest of the article…

Will Trump Torch the Global Economy on the Bonfire of his Vanity?

Will Trump Torch the Global Economy on the Bonfire of his Vanity?

At least it is confirmed for us.  Donald Trump wants regime change in Iran.  His cancellation of the JCPOA was a decision born his myopia.  He has surrounded himself with people who reinforce his view and manipulate him via his vanity.

And the price of implementing his current plan will be a global debt crisis which no one will escape.  The problem will be very few will see the links.

He wants to remake America and the world in his image while undoing anything President Obama touched.  Most of this I’m wholly on board with.  Obama was a vandal.  So, however, were Bush the Lesser and Bill Clinton.

We’re All Neocons Now

We have a leaked (yeah, right) memo explaining this is the plan.  But, we didn’t need this if we were being honest with ourselves.  Nothing Trump has done since he’s been in office has been contra to this goal; overthrowing the theocracy in Iran.

In fact, it has been a step-wise move in this direction with each decision he’s made.  Commentators I respect and have learned at the knee of still want to give Trump the benefit of the doubt.  Not me.

It’s right there in plain text.

Trump has capitalized on the insane Deep State opposition to his presidency to politicize this goal and get his base to ab-react for regime change, when he explicitly said that was off the table at his inauguration.

If the Democrats and Merkel want to stay in the deal, then the deal must be bad.  Obama Bad, Trump Good.  Trump is Orange Jesus.  He knows stuff, man.

What was a worry about Israeli influence in his administration in 2017 has now morphed into a call to duty to create chaos in Iran to assuage the American ego by saving the Iranian people from themselves.

…click on the above link to read the rest of the article…

Weekly Commentary: Disequilibrium

Weekly Commentary: Disequilibrium

Much to the consternation of our allies, President Trump withdraws from the Iran nuclear deal. WTI crude adds another 1.5% (up 17% y-t-d) this week to the high since November 2014. Iran and Israel moved closer to direct military confrontation. With even 40% rates unable to staunch the bleeding, a stunned Argentine government warily negotiates an IMF bailout. Italy’s far right and far left parties – both populist, anti-establishment, anti-euro and anti-immigration – begin negotiations to form a coalition government. Malaysians elect 92-year old Mahathir Mohamad, ending the 60-year reign of the Barisan Nasional party (including Mahathir as prime minister between 1981 and 2003).

Some astounding developments, but not enough these days to shake financial markets. Why fret a complex and increasingly unstable world, not with the timely return of Goldilocks. She’s back… Headline U.S. April CPI was up 0.2% vs. expectations of 0.3%. Core CPI was up only 0.1% against expectations of 0.2%. April Import Prices were up 0.3% vs. estimates of 0.5%. Forget surging energy prices, rather quickly the rosy narrative shifts to peak inflation.

May 11 – Reuters (Howard Schneider): “St. Louis Federal Reserve Bank President James Bullard on Friday spelled out the case against any further interest rate increases, saying rates may already have reached a ‘neutral’ level that is no longer stimulating the economy… ‘We should be opening the champagne here,’ not raising interest rates with unemployment low and inflation in no seeming danger of accelerating, Bullard said… ‘The economy is operating quite well right now.'”

I suggest the Fed and global central bankers hold back on carting out the bubbly. “Opening the champagne” is reminiscent of Citigroup CEO Chuck Prince’s summer of 2007 “still dancing.” Bullard focuses on traditional yield curve analysis. “I would say the yield curve inversion is getting close to crunch time.” “The yield curve inversion would be a bearish signal for the US economy if that develops.”
…click on the above link to read the rest of the article…

Blowout Week 228

Blowout Week 228

The big news this week is Trump’s re-imposition of sanctions on Iran, which will cut Iran’s oil production to the point where, combined with cratering oil production from Venezuela, it could cause another oil price spike. We follow with our usual mix – more on Iran, Venezuela and OPEC; oil in Norway; gas pipeline constraints in Europe; Japan moves to coal; British Columbia misses its renewables target; stalemate at the Bonn Climate Conference; California to mandate rooftop solar on new houses; Tesla’s 1GW battery; hydrogen storage in UK; the Swansea Bay tidal standoff; more cracks at Hunterston and how the ravages of climate change threaten historical records.

Reuters: Sanctions spell the end of OPEC output deal

President Donald Trump’s decision to withdraw from the nuclear agreement with Iran marks the end of the current output agreement between OPEC and its allies.

The prospective removal of several hundred thousand barrels per day of Iranian exports from the market will require a major adjustment. Saudi Arabia and its close allies Abu Dhabi and Kuwait hold almost all the spare capacity that could respond quickly to a reduction in Iranian exports. U.S. shale producers could also increase their output but it would take time and their light crude is not a good substitute for heavier Iranian oil. Russian firms may also hold spare capacity and could certainly increase output over a 12-month horizon. Their crude is a close equivalent to Iranian grades.

CNN: Oil prices could hit $100 a barrel next year

Collapsing oil production in Venezuela and potential export disruptions in Iran could push the price of Brent crude as high as $100 per barrel in 2019. Bank of America analysts said their target price for Brent, the global benchmark, was $90 for the second quarter of next year. But they warned there was a risk that deteriorating conditions in Iran would push prices to $100, a level not seen since 2014.

…click on the above link to read the rest of the article…

Oil tumbles as Iran nuclear deal looms

Oil prices tumbled on Monday as Iran and six world powers closed in on a nuclear deal that would end sanctions on the Islamic Republic and let more Iranian oil on to world markets.

News of a unanimous agreement by European leaders on a bailout loan for Athens, which should allow Greece to stay in the euro zone, helped pare early losses.

Brent crude for August fell $1.89 to a low of $56.84 a barrel before rallying back to around $57.30 by 4.40 a.m. EDT.

U.S. light crude, also known as West Texas Intermediate (WTI), was down $1.15 at $51.59 a barrel.

Iran and six world powers are reportedly on the brink of finding a nuclear deal that would bring sanctions relief in exchange for curbs on Tehran’s nuclear program.

A senior Iranian negotiator said a nuclear deal would be completed but cautioned that there was work to be done and he could not promise the talks would finish on Monday or Tuesday.

“I cannot promise whether the remaining issues can be resolved tonight or tomorrow night,” Iran’s Tasnim news agency quoted Deputy Foreign Minister Abbas Araqchi as saying.

The chance of Iran adding to a global oil surplus at a time of weak demand led some analysts to forecast more oil falls.

Bank of America Merrill Lynch said U.S. crude prices “could soon drop well below our $50 per barrel target” in the third quarter of 2015.

Commerzbank said a fall below $55 per barrel in Brent and below $50 per barrel in U.S. crude was “conceivable”.

Oil prices pared early sharp losses after European Council President Donald Tusk said euro zone leaders had “unanimously reached agreement” on a deal for Greece.

 

 

…click on the above link to read the rest of the article…

Olduvai IV: Courage
In progress...

Olduvai II: Exodus
Click on image to purchase

Olduvai
Click on image to purchase

Olduvai II: Exodus
Click on image to purchase

Olduvai III: Cataclysm
Click on image to purchase