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A Collapsing Venezuela Could Jolt Oil Market

Bloomberg Gadfly’s Liam Denning talks about how a collapsing Venezuela could jolt the oil market. Dr. Stafford Broumand, a plastic surgeon at 740 Park Plastic Surgery and the former president of the American Society of Plastic Surgeons, discusses the growth of the plastic surgery industry and the companies that could benefit. Paul Sweeney, U.S. director of research and a senior media and Internet analyst at Bloomberg, gives a preview of Google earnings and talks about Disney’s worker strike. Finally, Ira Jersey, an interest rate strategist at Bloomberg Intelligence, tells Pimm Fox and Lisa Abramowicz how a Fed runoff could significantly increase volatility in the mortgage-backed market.

Bloomberg Radio +1-212-617-5560

Running time 27:30

27 Comments on "A Collapsing Venezuela Could Jolt Oil Market"

  1. bobinget on Tue, 25th Jul 2017 8:47 am 

    Suddenly there’s a little attention being paid to Venezuela. Very little. China and Russia are quietly
    capturing all of Venezuela’s vast oil exports.
    Get used to it. The US can no longer depend on nearby Venezuela (or leftist Ecuador) for reasonably priced exports.
    For the foreseeable future we, the US, will shortly no longer have access to the biggest stash of known heavy crude on this planet.

    This should not come as a surprise to readers.

    What does this mean for oil prices in America?
    How much more are we dependent on Canada,
    Saudi Arabia?

  2. bobinget on Tue, 25th Jul 2017 4:50 pm 


  3. bobinget on Tue, 25th Jul 2017 5:09 pm 

    Saudi ‘Get Out of Town Money’

    Clearly, either cash is running so low selling parts of the airport is the best they can come up with or Royals are stripping value of the nation before
    beating it out of town.

    I suspect the latter.

    This week a larger refinery was hit with a Yemeni
    missile. First hit in many tries. My guess, not the last. The Saudis are claiming the refinery got heat stroke. Constant 110 F uses tons of oil to keep those AC’s running.

    But that’s not the worst.. Videos of a Saudi Woman
    wearing a blouse and skirt slightly above the knee
    hair uncovered, went ballistic. Men who watch porn daily had the Saudi woman arrested.

  4. Davy on Tue, 25th Jul 2017 5:27 pm 

    This is why the Chinese are not going to be the next superpower and the reason the US reign has ended.

    “There Is Only One Empire: Finance”

    “Any nation-state that meets these four requirements is fully exposed to a global loss of faith in its economy, debt, balance of payments and currency. There’s an entire sub-industry in journalism devoted to the idea that China is poised to replace the U.S. as the “global empire” / hegemon. This notion of global empire being something like a baton that gets passed from nation-state to nation-state is seriously misleading, in my view, for this reason: There is only one global empire: finance. China and the U.S. both exist within the Empire of Finance. Virtually every mercantile nation with access to global markets lives, works and thrives/dies within the Empire of Finance. Every nation that allows capital to flow into its economy is subservient to the Empire of Finance. Every nation with capital and debt markets exposed to (or dependent on) global financial flows is just another fiefdom in the Empire of Finance. China has thrived within the Empire of Finance by creating more debt and at a faster rate of expansion than any other fiefdom. China has brought 20 years of future growth and income forward, and eventually that vein of “wealth” runs out as time advances into the stripmined future.”

    “The Empire of Finance has few requirements for hegemony in its realm, but they are big ones. 1. If you want your national currency to act as a global reserve currency (or the global reserve currency), you must run permanent large trade deficits to export your currency in size to the rest of the world. This is the essence of Triffin’s Paradox, which I have covered many times. 2. Your national currency must float freely in the global marketplace and be liquid enough to trade $1 to 2 trillion per day in global foreign exchange (FX) markets. 3. Your sovereign debt/bonds must float freely in the global credit/debt marketplace and be liquid enough to trade in size (tens of billions of dollars) daily. 4. Global capital must be free to flow in and out of your currency, debt, assets and economy without restriction. (Ease of capital flow is the core of liquidity, risk management, and profitability.)”

    “There’s only one global empire, that of Finance. If you want global hegemony, you must accept the dominance of global finance and pay tribute. If you don’t want to submit to the empire, then you cannot be a global hegemon. When the Empire of Finance collapses under the weight of its debt, perverse incentives, exploitation and inequality, the financial system of every nation-state within the Empire of Finance will collapse, too. Being the hegemon within the collapsing system won’t protect the hegemon from collapse. Every nation-state that has submitted to the Empire of Finance will collapse.”

  5. Apneaman on Tue, 25th Jul 2017 5:46 pm 

    Study: US is slipping toward measles being endemic once again

    Just a tiny increase in vaccine refusals will triple measles cases, cost US millions.

    Antibiotics are a NWO libtard hoax-scam too, so don’t give any of those to your kids either. Oh and high fructose corn syrup, white bread and palm oil are health foods.

  6. bobinget on Tue, 25th Jul 2017 6:31 pm 

    Breaking (again)
    Re: Venezuela

  7. bobinget on Tue, 25th Jul 2017 6:35 pm 

    Goddamn Fools! Does my government believe Venezuela can’t find markets for crude?

    Sanctions limiting crude imports plays directly into Russian and China’s plans. Note, they, China and Russia beat us at our own game. Not the military game, that was always futile, but the Capitalist Game.
    Because Venezuelan crude is but a few days sail compared to months for ME supplies, effects will be felt double quick.

    Average DJT’s voters will the first to feel pain. Blue Collar Trumper’s didn’t deserve this.

    First, we sell off SPR. Then, a move to cut Venezuela’s collective throats. What the Hell is going down?

    ‘Losing’ Venezuelan oil will go down as a monster Black Swan. A swan we had at least two years warning of its coming. Time to start blaming Obama for higher gasoline prices.

  8. bobinget on Tue, 25th Jul 2017 6:43 pm 

    Venezuela will take all the white bread and sugar you can spare.

    My favorite breaking news for this afternoon concerns jizz.

    Must be all that corn syrup!
    DJT’s next slogan; Make American Men Fertile Again. Throw away that white bread!

  9. bobinget on Tue, 25th Jul 2017 7:05 pm 

    Have you felt the Jolt ?

    US – Venezuela Oil Import Sanctions – “possible” 😉
    US Treasury preps Venezuelan oil export sanctions: source
    Washington (Platts)–25 Jul 2017 401 pm EDT/2001 GMT

    The US Treasury Department is crafting sanctions which would prohibit the import of Venezuelan crude oil into the US, one of several sanctions options the White House is considering in response to an expected vote Sunday in Venezuela, an administration source said Tuesday.

    But the Trump administration, which has studied the impact of the potential crude oil import sanctions on the US refining sector, is not expected to impose Venezuelan oil sanctions, at least in the near term, the source said.

    “Treasury is preparing them, but that doesn’t mean they’ll implement them,” the source said.

    Related: Find more content about Trump’s administration in our news and analysis feature.

    The Trump administration has yet to decide on its expected sanctions response to the Sunday vote called by Venezuelan President Nicolas Maduro to elect a constituent assembly to redraft the country’s constitution, sources, both in and outside the administration, said Tuesday.

    Several sources said they expect the initial response from the Trump administration would be to sanction individuals and some institutions within Venezuela. The administration may also move to restrict some US exports of petroleum products, including gasoline and distillate fuel oil, one source said.

    Article continues below…

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    Latin American Wire
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    “There are lots of options being considered,” said one source familiar with the debate within the administration.

    This source said several key officials within the administration, including at Treasury and the Department of Energy, oppose any prohibitions on Venezuelan crude imports. Still, the White House has yet to decide on its path forward, this source said.

    “We believe the White House has not yet taken a decision regarding the scope of the sanctions, but we see indications that the embargo remains part of ongoing debate,” analysts with ClearView Energy Partners said in a note late Monday.

    Many within the Trump administration view sanctions on Venezuelan crude imports as having a more devastating effect on the US refining sector than on Venezuela’s economy, likely limiting the chances of them being implemented, the administration source said.

    Natalie Strom, a White House spokeswoman, declined to comment on the Trump administration’s plans.

    “We don’t comment on speculation of future sanctions,” she said Tuesday.

    A Treasury Department spokesman did not respond to a request for comment.

    In a statement last week, President Donald Trump said that if Maduro follows through on his pledge to rewrite the country’s constitution on July 30, the US “will take strong and swift economic actions.”

    A senior administration official said last week that a ban on Venezuelan imports was one of the options being considered.

    If Venezuelan oil sanctions were imposed US refiners, particularly along the Gulf of Mexico, would need to find new sources of heavy crude. While the US now imports about half of the amount of Venezuelan crude than it did 20 years ago, Venezuela remains a key supplier of the US Gulf refining market.

    At 795,000 b/d, Venezuela was the largest supplier of imported crude into the USGC in April, according to the US Energy Information Administration, followed by Saudi Arabia at 714,000 b/d.

  10. bobinget on Tue, 25th Jul 2017 7:17 pm 

    I’m guessing Putin is ordering totally corrupt Trump to sanction Venezuela. After-all Russia has the most to gain. (follow the money)

    It’s perfectly OK for Saudi Arabia or Russia to flaunt human rights violations on a daily basis.
    Suddenly, we are shocked, shocked, to hear of such behavior in Venezuela.

    At this point it hardly matters if Trump decides to
    limit or stop Venezuelan imports. The damage has been done. Maduro’s only option is to accept
    Russian and Chinese terms.

    From now on, forget about Venezuela AND Ecuador
    as a reliable supplier.

  11. Makati1 on Tue, 25th Jul 2017 7:49 pm 

    “It’s perfectly OK for Saudi Arabia or Russia to flaunt human rights violations on a daily basis.”

    Look in the mirror, bobInget. Americans have never held human rights very high in importance. From the slaughter of the original North Americans, to slavery, to wars of choice, to the current slaughter of millions in far away countries in the name of “democracy”.

    Americans are the most hypocritical people on earth.

  12. Makati1 on Tue, 25th Jul 2017 7:54 pm 

    Worth repeating: For all you China (Asia) bashers…

    “The People’s Bank of China official referenced how this trend was already underway. Just last year Standard Chartered bank began to maintain accounts in SDR’s. “In terms of the first and secondary markets they will develop fairly well.”

    The Great Leveling is well under way. LOL

  13. bobinget on Tue, 25th Jul 2017 8:59 pm 

    Not ALL Americans. Makati.

    First of all, Trump’s reason for sanctions are indeed
    ‘human rights violations’. Remember, Trump fired
    the FBI director because Comey was ‘so mean’ to Hillary Clinton in the presidential election! LOL

    Trump wants his own attorney general to quit because he (was forced) to recuse himself from the Russian scandal. Trump believes he can stop the special investigation by firing the Special Council.

    We are talking about a cornered, compromised,
    man-child who is willing to harm as many Americans as possible. For money.

    DJT will not get away with his foolish, childish tactics. America, Americans are tougher then that.
    My nation, America, will survive this crisis and flourish.

  14. Apneaman on Tue, 25th Jul 2017 10:08 pm 

    CIA chief hints agency is working to change Venezuelan government

    The US has a long and bloody history of meddling in Latin America’s affairs

    Regime change – Same shit different country.

  15. Makati1 on Tue, 25th Jul 2017 10:12 pm 

    bobInget, “Your Nation” is already failing and the failure is gaining speed. Trump will only hasten the end. By ‘flourish’, do you mean, be a 3rd world country? Because that is the end game of the elite. They want the U$ to be leveled to that of the rest of the world. That means a per capita income of about $10,000. per year at this point. Not the reported $50,000 per year Americans currently have. Denial or flag waving will not stop the decline. Hopium is cheap, but worthless.

    Keep guzzling that government Koolaid.

  16. Apneaman on Tue, 25th Jul 2017 10:37 pm 

    bobinget, so you believe these MSM reports about Venezuela are 100% accurate? Same as Iraq and WMD and fake testimony from Gulf war about burning babies and on and on with the MSM spin every time the US wants to wound another country and force a regime change.

    Published on Jul 11, 2017

    Abby Martin talks to Venezuelans on the streets of Caracas and investigates the main claim that there’s no free press, and that there is no food in the supermarkets.

    Using hidden cameras, she takes you through local grocery stores and the underground black market currency exchange, the main source of inflation in the country.

    Abby sits down with economist Pasqualina Curzio to learn more about the nature of the black market and chronic shortages of goods. Knowing that world leaders are calling for foreign intervention, Abby finds out if locals agree.

    Next week you’ll be watching the MSM and Brian Williams will come on and tell the viewing public how him and seal team 6 1/2 had their helicopter shot down…twice (on the way there and on the way back) whilst on a top secret black op’s mission to sabotage Venezuela’s massive stock pile of WMD including their super duper extra deadly nuclear socialist neutron bomb – they explode it over a city and all the wealth is left in place but the explosion causes the wealth to be redistributed.

    Hurray! good guys win again.

  17. bobinget on Wed, 26th Jul 2017 8:43 am 

    OK, points taken. Democracy Broken.
    Back to basics.
    Brent is currently up another one plus percent.

    If EIA confirms APA estimate of -10.2 M (fewer) barrels in storage, gasoline prices will rise. The general public will have had zero warning.

    The general market reaction is bullish because if we are consuming lots more oil, everything is hunky dory.

    Once again MSM missed the biggest story to come down the pike, possible Venezuelan sanctions.
    In order to insure ‘we’ missed the story, Russians are jumping up and down saying sanctions on THEM will do great harm to US/Russian relations.
    Plus, ‘we will retaliate’. I’m so frightened. Not.
    I Trump signs this bipartisan bill, Putin will be giggling all the way to his secret banks. IOW’s
    oil, (the actual point) goes up another one or two percent. Remember: Putin, the absolute wealthiest
    person on the planet deals in distraction, misdirection. When Putin believes President of the United States is no longer of use, he will drop a fist full of dimes on him through Wikileaks.
    Don’t walk under that Wall Street ladder.

    I’ll publish EIA report here in one hour. Or, you can see for yourselves. Post 10:30 Eastern

  18. bobinget on Wed, 26th Jul 2017 8:54 am 

    Falling Oil Inventories – It’s not Just the USA (edit)

    ARA crude inventories drop:

    Japanese stocks down 10.17% Y-o-Y

  19. bobinget on Wed, 26th Jul 2017 9:02 am 

    By Florence Tan and Jessica Jaganathan | SINGAPORE

    (Reuters) – The United Arab Emirates will import the country’s first oil cargo from the United States, two sources familiar with the matter said, as the OPEC producer sought substitutes to replace Qatari condensate supplies after a diplomatic row.

    The UAE halted condensate imports from Qatar after it, along with Saudi Arabia, Egypt and Bahrain, severed diplomatic and transport ties with Qatar after accusing it of supporting terrorism, a claim which Doha denies.

    Abu Dhabi National Oil Co (ADNOC) bought a U.S. Eagle Ford condensate cargo in a tender for September arrival, the sources said on Wednesday.

    Specific volumes were not available but the cargo will arrive in a supertanker that can carry up to 2 million barrels of oil, one of the sources said.

    ADNOC declined to comment.

    ADNOC faced limited options in sourcing for condensate substitutes as strong demand for the ultra-light oil in South Korea and Indonesia tightened supplies in Asia, trade sources said.

    This forced the state oil company to look for supplies from other regions, including Eagle Ford condensate from the United States.

  20. bobinget on Wed, 26th Jul 2017 9:07 am 

    ME buys US oil.
    Betcha UAE got a great tanker rate too.

    If you don’t find this item problematic, what spins your wheels?

  21. bobinget on Wed, 26th Jul 2017 9:34 am 

    EIA Repore: Diesel, up 13% YOY, IMPORTS HIGHER

    Summary of Weekly Petroleum Data for the Week Ending July 21, 2017

    U.S. crude oil refinery inputs averaged 17.3 million barrels per day during the week
    ending July 21, 2017, 166,000 barrels per day more than the previous week’s average.

    Refineries operated at 94.3% of their operable capacity last week. Gasoline production
    increased last week, averaging 10.4 million barrels per day. Distillate fuel production
    increased last week, averaging over 5.1 million barrels per day.

    U.S. crude oil imports averaged over 8.0 million barrels per day last week, up by 48,000
    barrels per day from the previous week. Over the last four weeks, crude oil imports
    averaged over 7.8 million barrels per day, 4.2% below the same four-week period last
    year. Total motor gasoline imports (including both finished gasoline and gasoline
    blending components) last week averaged 723,000 barrels per day. Distillate fuel imports
    averaged 130,000 barrels per day last week.
    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
    Reserve) decreased by 7.2 million barrels from the previous week. At 483.4 million
    barrels, U.S. crude oil inventories are in the upper half of the average range for this time
    of year. Total motor gasoline inventories decreased by 1.0 million barrels last week, but
    are in the upper half of the average range. Both finished gasoline inventories and
    blending components inventories decreased last week. Distillate fuel inventories
    decreased by 1.9 million barrels last week but are near the upper limit of the average
    range for this time of year. Propane/propylene inventories increased by 0.2 million
    barrels last week but are in the lower half of the average range. Total commercial
    petroleum inventories decreased by 9.4 million barrels last week.

    Total products supplied over the last four-week period averaged about 21.2 million
    barrels per day, up by 4.6% from the same period last year. Over the last four weeks,
    motor gasoline product supplied averaged over 9.7 million barrels per day, down by 0.3%
    from the same period last year. Distillate fuel product supplied averaged over 4.2 million
    barrels per day over the last four weeks, up by 13.2% from the same period last year. Jet
    fuel product supplied is up 10.7% compared to the same four-week period last year.

  22. bobinget on Wed, 26th Jul 2017 9:41 am 

    -7.2 less than expected. So, since computers run the world, oil prices will fall.

    I look at consumption. Excellent. Jet fuel, up again almost 11%. Distillates up a whopping 13.2%
    (farm and trucking sectors)
    Gasoline steady despite a neighbor buying a Tesla.

  23. bobinget on Wed, 26th Jul 2017 9:57 am 

    Talk about trying to influence elections…
    Washington (Platts)–25 Jul 2017 401 pm EDT/2001 GMT

    The US Treasury Department is crafting sanctions which would prohibit the import of Venezuelan crude oil into the US, one of several sanctions options the White House is considering in response to an expected vote Sunday in Venezuela, an administration source said Tuesday.

    But the Trump administration, which has studied the impact of the potential crude oil import sanctions on the US refining sector, is not expected to impose Venezuelan oil sanctions, at least in the near term, the source said.

    “Treasury is preparing them, but that doesn’t mean they’ll implement them,” the source said.

  24. rockman on Wed, 26th Jul 2017 10:55 am 

    “The US Treasury Department is crafting sanctions which would prohibit the import of Venezuelan crude oil into the US,” It will be interesting to see who our refineries use to replace the Venezuelan heavy oil they REQUIRE to blend with our light oil/condensate production to get the 32° API gravity they are designed to process more efficiently.

    And how much more it will ultimately cost the US consumers.

  25. bobinget on Wed, 26th Jul 2017 7:33 pm 

    If CITGO’s three refineries close, resulting from closing off Venezuelan crude imports, over 3,500 Americans loose jobs. Who knows how many indirect jobs will be effected?

    Russia currently has a controlling interest in those refineries and may sell those refineries.
    I believe today’s Venezuelan sanctions were lost among news of banning trans-genders from serving in the military. Few understand the gravity of this situation. Everyone here understands Venezuela is America’s #3 importer.

    As we talk to death ‘the transgender problem’
    (like it WAS a problem) The US just blew off
    our future petroleum back-up for at least a generation.

    Our ‘Dear Leader’ will once again, using misdirection, (transgender brew ha ha) just pulled off THE classic energy victory for Russia and China. China and Russia will finalized a Venezuelan deal this week that puts these two in charge of the biggest oil stash in the world. Oil traders once woken up in August will celebrate.
    “Yip pee, shortages”

    Consumers won’t know what hit em in September.

    Bolivian Foreign Minister David Choquehuanca |

    Follow us

    The U.S. Treasury Department announced new sanctions on 13 senior officials of Venezuela’s government Wednesday.
    Bolivarian Alliance for the Peoples of Our America, ALBA, Secretary General David Choquehuanca said on Wednesday that renewed U.S. sanctions on Venezuela are unacceptable and that countries in the region should condemn such behavior.

    US Announces New Sanctions on Venezuela in Interventionist Move

    “We are all sovereign people and authorities have the obligation not to accept such declarations, but I do not understand why many of them remain silent, said in Madrid at a meeting with journalists.

    Choquehuanca said the United States’ actions will not help Venezuela solve ongoing problems and will only bring uncertainty to “those who are in favor of chaos, disorder and war.”

    According to Choquehuanca, there are current two paths in Venezuela at the moment. One is a road that goes through dialogue, as proposed by the National Constituent Assembly, and another road is the path of violence, which “has no proposals.”

    “Today the brave people of Venezuela are in the streets defending democracy, its sovereignty, its dignity and the achievements of the Bolivarian Revolution,” Choquehuanca said.

    “We should not allow any intervention, no matter where it comes from.”

    In regards to Organization of American States Secretary General Luis Almagro, Choquehuanca said he had lost “all authority” and was not only dividing Venezuela, but also dividing the organization itself, which is now “weakened.”

    He also pointed out that Venezuela and other countries led by progressive governments have suffered similar pressures.

    “We have had bitter experiences in the past … but our peoples have risen,” he said. (snip)

    If YOU are an investor, take a long look at Canadian, beaten down and oil companies.

    The really bad news; oil shortages and high prices will stimulate Alberta’s oil sands (or Tar Sands) on to even greater production. As it stands, China and India will soon be bidding up scarce resources.
    (it will take a few years for Venezuela to get back to 2.5 million barrels or greater)
    If Canada builds gas and oil export pipelines through BC, $50 oil will be a fond memory.

  26. bobinget on Thu, 27th Jul 2017 5:58 pm 

    CNN)Yemen-based Houthi rebels fired a missile Saturday that flew hundreds of miles into Saudi Arabia, two US defense officials told CNN.

    The missile, described by one official as a Scud, was fired from Houthi controlled territory near Sa’Dah in northern Yemen and flew some 930 kilometers before landing near the western coast of Saudi Arabia.
    It is assessed that the target was a Saudi oil facility near the port city of Yanbu.

  27. bobinget on Thu, 27th Jul 2017 9:05 pm 

    US State Dept. orders ALL staff home from Venezuela.

    It appears President Trump may ban Venezuelan oil. (Venezuela is America’s third biggest supplier)

    OR, God forbid, order in The Marines as a “peace keeping” force. AKA Syria in our backyard.
    Getting mixed up in civil wars has always been
    problematic. Donald Trump has already stated ‘we should have TAKEN Iraqi oil’. Let’s hope he doesn’t follow-up a US ban on Venezuelan oil with a deadly military adventure.

    Besides Trump and Putin what OTHER entities will profit from breaking diplomatic relations?
    #1) China (simply buys, for cash, crude DESTINED for US consumption).
    Suncor Energy.
    Canadian Natural Resources Limited.
    Encana Corporation.
    Husky Energy.
    Cenovus Energy.
    Talisman Energy.

    In either event look for higher priced gasoline as soon as this coming week.

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