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Page added on May 7, 2018

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Oil hits $70 for the first time since 2014

  • Oil prices jumped to their highest since late 2014 on Monday on a deepening economic crisis in Venezuela and worries that the Unites States could re-impose sanctions on Iran.
  • The dollar neared its 2018 peak at the same time.
  • U.S. crude oil prices rose 70 cents, or 1 percent, pushing above $70 a barrel for the first time since November 2014 as the crisis in OPEC member state Venezuela threatened to further crimp its production and exports.

LONDON (Reuters) – Oil prices jumped to their highest since late 2014 on Monday on a deepening economic crisis in Venezuela and worries that the Unites States could re-impose sanctions on Iran, while stocks firmed and the dollar rose towards its 2018 peak.

With trade thinned by a holiday closure in London, European shares opened higher, boosted by energy stocks as well as encouraging earnings updates.

Heavyweight Nestle also gained after the Swiss-based food firm agreed a tie-up with Starbucks.

Most Asian markets also rose after Friday’s tame reading on U.S. wage growth lessened chances of a pick-up in the pace of interest rate hikes by the Federal Reserve. Gains were capped by Sino-U.S. trade tensions.

U.S. equity futures pointed to a positive open for Wall Street.

The day’s eye-catching moves came in energy markets.

U.S. crude oil prices rose 70 cents, or 1 percent, pushing above $70 a barrel for the first time since November 2014 as the crisis in OPEC member state Venezuela threatened to further crimp its production and exports.

Brent crude oil futures were at $75.55 per barrel at 0945 GMT, up 0.9 percent and having also touched their highest since November 2014.

Also driving oil prices higher was the May 12 deadline set by U.S. President Donald Trump for Europeans to “fix” the deal with Iran over its nuclear program. If they do not, Trump has said he would refuse to extend U.S. sanctions relief for the oil-producing Islamic Republic.

The European oil and gas share index was up 0.4 percent.

“All in all it’s a positive environment for the equity markets,” said Niels Christensen, chief analyst at Nordea in Copenhagen.

Dollar rally intact

dollar billWonderlane/flickr

The dollar strengthened back towards the 2018 peak it reached on Friday, when investors shrugged off the weaker-than-expected jobs report to extend the currency’s 2-1/2 week-long rally.

The dollar, which has enjoyed a sudden reversal in fortunes as investors bet on more Fed rate hikes and a slower pace of tightening in the euro zone, rose 0.3 percent versus the euro to $1.1928.

Measured against a basket of currencies, the dollar index was 0.3 percent stronger at 92.811, not far from the 92.9 it hit on Friday – its highest since December.

In data from the euro zone’s largest economy Germany, industrial orders unexpectedly dropped for the third month running in March, suggesting factories there are shifting into lower gear.

The week ahead includes readings on the health of the Chinese economy and, U.S. inflation ,and a Bank of England monetary policy meeting.

“Looking at the U.S. economic data, everything is looking quite positive. No one expects higher interest rates to be a brake on economic growth,” said Christensen.

The soft German data supported euro zone government bond markets as investors continued to bet on caution from the European Central Bank.

“A lot has been repriced in terms of the ECB so the outlook for bonds is a bit more mixed,” said Commerzbank rates strategist Rainer Guntermann.

Business Insider

38 Comments on "Oil hits $70 for the first time since 2014"

  1. Kat C on Mon, 7th May 2018 10:27 am 

    10 years since things collapsed. Jump from a 13 story building you might survive. Jump from a 20 story building…..splat

  2. JuanP on Mon, 7th May 2018 10:36 am 

    Oil at 3.5 years high.

  3. Cloggie on Mon, 7th May 2018 10:40 am 

    Excellent, onward to $100,-

    “Renewables can’t run without fossil fuel”-latest:

    “Norwegian Oil and Gas Project to Run on Offshore Wind?”


  4. JuanP on Mon, 7th May 2018 10:53 am 

    “Oil prices jumped to their highest since late 2014 on Monday on a deepening economic crisis in Venezuela and worries that the Unites States could re-impose sanctions on Iran.”
    I believe Venezuela will keep getting worse. I also believe that the US will break the deal with Iran. This is a good time to do it while US production is at an all time high. The oil companies and the other oil exporting countries will make a bundle thanks to these problems. I think that oil at around USD 80-100 is what is best at this time. There is a need to encourage investment in future oil production. Investing after this financial bubble bursts will be much harder.

  5. JuanP on Mon, 7th May 2018 10:57 am 

    And now is the time to invest in energy alternatives and alternative lifestyles, too. I sometimes take things for granted. But I am not against investing in oil E&P since I think we are doomed anyway.

  6. BobInget on Mon, 7th May 2018 11:04 am 

    Conoco Begins Confiscating Venezuela Oil Assets – Zero Hedge

    “This Is Terrible For PDVSA”: Conoco Begins Confiscating Venezuela Oil Assets, Infuriating China
    Profile picture for user Tyler Durden
    by Tyler Durden
    Mon, 05/07/2018 – 10:32
    While there is an increasingly more overt trade war being waged between China and the US, a more covert – and arguably important – contest between the two superpowers is currently being fought for spheres of influence, most notably in Africa, which is now largely a Chinese colony, in Latin America, where increasingly more countries are gravitating toward China and away from the “west”, and more recently, even Europe.

    Of all such “zones of influence”, the one country where Beijing has arguably invested the most is Venezuela, and for obvious reasons: the country with the world’s largest petroleum reserves has found itself in a spiraling economic crisis in recent years and with the US refusing to step in and provide much needed funding, it allowed both China and Russia to provide the Maduro regime with loans, mostly in the form of vendor financing, as new Chinese and Russians funds were wired in exchange for Venezuela oil delivery contracts, typically struck well below prevailing market prices.

    Which is why China is sure to be incensed following the latest indirect attempt by the US to further limit Venezuelan oil output, and impair the production capacity of what has become one of China’s key Latin Americans clients.

    Here’s what happened.

    On April 25, ConocoPhillips won a ruling that said the US major was entitled to more than $2 billion from Venezuela’s insolvent state oil company, PDVSA, over the country’s expropriation of several oil projects more than a decade ago. The drawn-out international legal struggle began in 2007 when ConocoPhillips and Exxon Mobil refused to cede control of their major oil production ventures to the Venezuelan government, as demanded by Hugo Chávez, who was president. The U.S. firm left the country after it could not reach a deal to convert its projects into joint ventures controlled by PDVSA, even as several other oil companies, including Chevron, Repsol of Spain and Total of France, agreed to the demand and accepted partnerships with the national oil company, Petróleos de Venezuela, better known as PDVSA.

    The problem, however, now that Conoco has the greenlight to demand billions, is trying to collect on the court ruling: the Venezuelan government has resisted the demands of companies whose assets it has confiscated, and since it is effectively bankrupt, there is little it can be threatened with under conventional contract law.

    So, following the April 25 ruling, in a statement the Houston-based ConocoPhillips said it would “pursue enforcement and seek financial recovery of its award to the full extent of the law.”

    Over the weekend it did just that.

    As Reuters updates, ConocoPhillips has moved to “take Caribbean assets” – i.e. confiscate – belonging to Venezuela’s state-owned, solvency-challenged PDVSA as part of its unilateral enforcement of the $2 billion arbitration award.

    The U.S. firm is said to have targeted PDVSA facilities on the islands of Curacao, Bonaire and St. Eustatius that accounted for about a quarter of Venezuela’s oil exports last year. The three play key roles in processing, storing and blending PDVSA’s oil for export.

    The move, incidentally, is entirely legal: Conoco received court attachments freezing assets at least two of the facilities, and could move to sell them, one of the sources said.

    What the confiscation of key Venezuela assets means is that the US oil major’s legal maneuvers could further impair PDVSA’s already sharply declining oil revenue and the country’s convulsing economy. Venezuela is almost completely dependent on oil exports, which have fallen by a third since its peak and its refineries ran at just 31 percent of capacity in the first quarter.

  7. dave thompson on Mon, 7th May 2018 11:45 am 

    High oil prices lead to a resection it has happened the same way numerous times. The price goes up demand drops then people start losing jobs and on it goes. Never lasts long, the high oil prices that is, what lasts is the resection part. Lets not forget to blame Trump.

  8. MASTERMIND on Mon, 7th May 2018 12:01 pm 


    Renewable s produce electricity. Oil is not used for electricity. Its used for 90 percent of the worlds transportation. You are energy illiterate and peak oil ignorant.

  9. BobInget on Mon, 7th May 2018 12:05 pm 

    Dave, One question.
    Is Venezuela’s apparent outage long lasting
    or not? (one year, two or three?)

    With Venezuela’s oil WORKERS scattered far and wide, infrastructure being carted off, bills unpaid,
    credit in shambles, If we started TODAY, to rebuild, how long would it take for Venezuela to export a modest 500,000 BPD?

    The US Military may be the best in the world, can they protect ‘foreign oil workers’.

    I put to you, this time IS different.

  10. BobInget on Mon, 7th May 2018 12:20 pm 

    With investments in finding and developing ‘new’
    oil a fraction of what it was when $100 CL was the norm, by the time Ven comes back on line will EXISTING fields be pumping more or less oil?

    By 2020 we will be shifting attention away from ‘overpriced’ oil to natural gas.

  11. Cloggie on Mon, 7th May 2018 12:44 pm 

    Renewable s produce electricity. Oil is not used for electricity. Its used for 90 percent of the worlds transportation. You are energy illiterate and peak oil ignorant.

    Yeah, the continent of 500 million where science and technology was invented has embarked on a fatal energy policy. They didn’t realize that 90% of the world’s transportation is fueled by oil. Now Europe is f*, so sad.

    If we only has listened to millimind, now it is too late.

  12. MASTERMIND on Mon, 7th May 2018 1:09 pm 


    renewables” aren’t renewable. They are derivatives. And science and technology can’t invent energy.

  13. MASTERMIND on Mon, 7th May 2018 1:12 pm 


    Shouldn’t you be picking tulips about now? Do what your faggot ass country does best! Your people are almost as dumb as the Polish. But nobody is dumber than them…Not all white people are equal…

  14. twocats on Mon, 7th May 2018 1:19 pm 

    Oil momentum is strong. Dollar momentum is strong.

    1) I thought a strong dollar meant low oil prices? Oh wait – we are a 3rd world commodity producing country – so when the commodity is strong our currency is strong. Got it.

    2) its a good thing our global financial markets are not being entirely run by momentum-seeking robots or else this small momentum might snowball out of control. Oh, wait…

    speaking of waiting – the wait is almost over.

  15. dave thompson on Mon, 7th May 2018 1:36 pm 

    BobInget Good points. Who knows how long Venezuela will be in the economic situation that it is in. Most likely it will be when the US can get it’s collective corporate mitts on the oil once again.
    I am strictly speaking, about what happens here in the US. The US does not care where the oil imports come from only the price at the pumps so to speak. We are so reliant on cheap energy that any kind of jump in the price sends the US economy into a tailspin. AND it stays that way for an extended period even after the prices go down. The oligarchs know this and make lots of money off of labor demand then by holding down wages .

  16. Cloggie on Mon, 7th May 2018 1:41 pm 

    “Shouldn’t you be picking tulips about now? Do what your faggot ass country does best! Your people are almost as dumb as the Polish. But nobody is dumber than them…Not all white people are equal…”

    Americans grow grain and sell it for 10 cent/kg to dirt poor Egyptians. Dutch grow tulips and sell it for 10 euro/kg to rich countries. That’s why Dutch agrarian exports (#2, 17 million, 44,000 km2) are not very behind that of the US (#1, 330 million, 10 million km2).

    Who is the dumb one again? And our country side looks nice and smells good:

  17. dave thompson on Mon, 7th May 2018 4:06 pm 

    Explain this Cloggie Mr smells great to me. From the Gardian;

    There is a dirty stench emanating from the Dutch dairy sector. The industry is, by most measures, hugely successful: despite the small size of the country, it is the fifth largest exporter of dairy and has a much-touted reputation as the tiny country that feeds the world.

    But there’s a catch: the nation’s 1.8 million cows are producing so much manure that there isn’t enough space to get rid of it safely.

    From stools to fuels: the street lamp that runs on dog do
    Read more
    As a result, farmers are dumping cow poo illegally, the country is breaking EU regulations on phosphates designed to prevent groundwater contamination, and the high levels of ammonia emissions are affecting air quality.

    As a result, WWF is calling for a 40% cut in cow numbers over the next decade, and a return to a dairy sector that can deal with its own dung.

    “We have improved productivity and efficiency substantially over the past decades but against what environmental costs? We have the lowest biodiversity in Europe after Malta, with only 15% of our original biodiversity left,” says Natasja Oerlemans, head of agriculture at WWF Netherlands.


    About 80% of farms in the Netherlands produce more dung than they can legally use on their farm. To get around the limits, farmers pay an estimated €550m a year to get the manure removed. A recently uncovered fraud found a number of them had been avoiding the cost altogether by transporting the manure off-farm on paper, but in reality dumping it on farm fields.

    The Dutch are already allowed to spread more manure on land than the rest of the European Union, but a large expansion in the sector in recent years has seen phosphate levels repeatedly exceeded. Under pressure from the EU, the Dutch government has now been forced to pay farmers compensation to try to get them to reduce cow numbers.

    It has been a rude wake-up call for farmers, admits Wiebren van Stralen, a former policy adviser for the Dutch farmers’ union, LTO Nederland. He says the recent growth in dairy has been sustained by cheap imports of grain, soy and maize, with excess production ending up as low-value milk powder exports.

    “We don’t want to be seen as part of the intensive livestock sector,” says Richard Scheper, a dairy analyst at Rabobank. “The Netherlands is like a big city. Everyone has a house, good life and enough to eat so they think about nature. The pressure is higher than poorer or more rural countries.”

    Not everyone is convinced the country needs immediate saving from cow pats. Martin Scholten, director of animal science at Wageningen University, says reducing dairy output would “ignore our responsibility to feed the world”.

    Farmers spread manure on the fields.
    Facebook Twitter Pinterest
    Farmers spread manure on the fields. Photograph: Ton Koene/Alamy

    Cows are loving, intelligent and kind – so should we still eat them?
    Read more
    The fate of the country’s cows should ultimately depend on the market, says the Dutch Dairy Association. “The numbers of dairy consumers worldwide are growing; as exporting countries it would be naive to stop exporting our products and only our knowledge. This area is mostly designed for producing dairy,” said a spokesperson.

    However, political support for dairy in the Netherlands is waning, with last year’s Dutch elections seeing a for two parties prioritising on the livestock sector, The GreenLeft party and Party for the Animals. The main milk processor in the country, FrieslandCampina, which collects 80% of Dutch milk, also pays extra to farmers who allow their cows to graze outdoors and is to improve biodiversity levels on farms.

    Hans Van Trijp, a professor of marketing and consumer behaviour at Wageningen University, believes the days of the Dutch dairy sector in its current state are numbered. “If you were to redesign the Netherlands and were not tied to the status quo, would you do it again?” he asks. “The answer is probably not.”

    Since you’re here …
    … we have a small favour to ask. More people are reading the Guardian than ever but advertising revenues across the media are falling fast. And unlike many news organisations, we haven’t put up a paywall – we want to keep our journalism as open as we can. So you can see why we need to ask for your help. The Guardian’s independent, investigative journalism takes a lot of time, money and hard work to produce. But we do it because we believe our perspective matters – because it might well be your perspective, too.

    I appreciate there not being a paywall: it is more democratic for the media to be available for all and not a commodity to be purchased by a few. I’m happy to make a contribution so others with less means still have access to information.
    Thomasine, Sweden

  18. MASTERMIND on Mon, 7th May 2018 4:23 pm 

    Lets get this class war started!

    Hey Clogg….Soon….

    The future belongs to the Anarchist!

  19. MASTERMIND on Mon, 7th May 2018 5:01 pm 

    Huge Human Inequality Study Hints Revolution is in Store for U.S.

  20. Kat C on Mon, 7th May 2018 5:17 pm 

    Cloggie from the article you posted “The company did not get into any further details on how offshore wind would be incorporated into the project.” Just so much wind…IMO

    But you still need the rare earth minerals for the windmills and to get them you have to cross oceans And no one is yet building a windpowered fleet of ships to go get those raw materials.
    Until you can build the windmills with only wind you still need fossil fuels. There are lots of plans out there for wind powered ships, its just that no one is building the fleets of them we need. Clipper ships in these plans look like they are almost all wood Of course having cut down so many of our hardwood forests it might be hard to replicate them. We need some Teak, American Rock Elm, English Oak, Hackmatack (?) and American White Oak. Hmmm and how many would we need to build to keep industrial society going???? Oh Hackmatack is The American Tamarack tree (Larix laricina), or Larch,

  21. MASTERMIND on Mon, 7th May 2018 5:18 pm 

    Subtle message to the elites!

    There’s a storm coming!

  22. MASTERMIND on Mon, 7th May 2018 5:20 pm 


    renewables” aren’t renewable. They are derivatives.

  23. Kat C on Mon, 7th May 2018 5:21 pm 

    Dave, Ironic, manure used to be so valuable that people in China made money hauling night waste from the cities to the farm and farmers built roadside outhouses and decorated them so people passing by would give them their human manure. And the US passed the Guano Islands Act declaring they could claim possession of islands with bird poop deposits.

    Whenever any citizen of the United States discovers a deposit of guano on any island, rock, or key, not within the lawful jurisdiction of any other Government, and not occupied by the citizens of any other Government, and takes peaceable possession thereof, and occupies the same, such island, rock, or key may, at the discretion of the President, be considered as appertaining to the United States.

    — Section 1 of the Guano Islands Act

    And now people are having a hard time getting rid of cow manure. We are truly become an insane species. If we don’t recycle human and animal wastes we use up the planet even faster.

  24. Kat C on Mon, 7th May 2018 5:24 pm 

    Mastermind, I know renewables aren’t renewable. Just pointing out one of the reasons they aren’t renewable. They get called renewable because so many of the inputs into creating the devices, wind mills, solar panels, are ignored. I could as you do just say they aren’t renewable. I choose to point out the flaws in calling them renewable, but its probably a waste of my time (which also isn’t renewable)

  25. MASTERMIND on Mon, 7th May 2018 5:58 pm 

    Worlds largest multinational bank HSBC Investor Alert “Man Battlestations”

  26. MASTERMIND on Mon, 7th May 2018 6:12 pm 

    The far right is rising, and Britain is dangerously complacent about it

    When the oil starts to run out its on and popping! The pigs can’t guard the fascist forever!

  27. Duncan Idaho on Mon, 7th May 2018 6:24 pm 

    “The pigs can’t guard the fascist forever!”

    This will pale what was left of the French Aristocracy in 1900.

  28. Anonymouse1 on Mon, 7th May 2018 6:45 pm 

    CLoggen-fraud doesn’t answer questions dave, by his own admission, he is a BROADCASTER, a propadandist, aka ‘a bullshiter’. This is why he seldom bothers to actually, you know, read to the articles he cites, articles that often directly refute his horshit narravtives. He’ll even cite the same article multiple times, even AFTER its been pointed out the article directly refutes his cornucopian, creationist boilerplate.

    Listening to his endless nonsense, you would think he lives in the promised land or something…..

    However, cloggraham finklestein and the dutch dairy industry share one thing in common. Both produce copious amounts of manure. Unlike the dutch dairy industry, cloggberg has found a place to dump his excess manure.

    Its called, and its a dumping ground for all his WWII, magical flying cars and Donald trump the ‘anti-globalist crusade’ fantasies

  29. MASTERMIND on Mon, 7th May 2018 7:17 pm 


    I think clogg has some sort of autism or mental illness.. He is very paranoid and delusional.

  30. Boat on Mon, 7th May 2018 7:22 pm 


    Of course renewables are renewable. That’s how they got their name. Just like the small m in Mm represents capacity.

  31. MASTERMIND on Mon, 7th May 2018 7:32 pm 

    Huge Human Inequality Study Hints Revolution is in Store for U.S.

    The elites are trapped like rats! Let their blood run in the streets! We can use their Brooks Brothers suits to clean it up!

  32. MASTERMIND on Mon, 7th May 2018 7:53 pm 

    The day the revolution comes!

  33. Anonymouse1 on Mon, 7th May 2018 8:01 pm 

    While your assessment is accurate in and of itself, considering the shape you are in mentally, davyturd, that was a strange thing to say.

  34. Cloggie on Mon, 7th May 2018 11:37 pm 

    “The day the revolution comes!“

    The US had a Schwitz as well, at the time for Japanese:

    Exactly the same as the Polish original.

    Could be reused for millimind, so he can think his revolutionary plans over in peace and en passant getting some work done.

  35. Kat C on Tue, 8th May 2018 3:07 am 

    Boat, labeling something renewable doesn’t make it renewable. Corn ethanol is supposed to be renewable energy but it depends on chemical fertilizers which are often washed to the sea creating dead zones. But as long as they can keep growing corn. The phosphorus is mined and we may be at peak phosphate.
    The nitrogen is made using natural gas
    We are killing our soils
    But hey as long as you can grow another crop of corn you call it renewable….until we can’t grow anything. That you call starvation.

  36. Dooma on Tue, 8th May 2018 4:46 am 

    That was really quite amusing Boat. It deserved more credit.

  37. Antius on Wed, 9th May 2018 3:35 am 

    Global energy consumption now appears to be slowing. This appears to be driven by the slow levelling off of working age populations. The world as a whole will soon hit ‘peak people’, at least working age people.

    From an environmental viewpoint, this can only be a good thing. From a resource sustainability viewpoint, it is a good thing.

    From an economic viewpoint, it could get seriously ugly. Notice especially the declining working age population of China, which peaked in 2015 and the enormous coal consumption, which is apparently being replaced by a mixture of nuclear and renewable energy. Europe’s working age population peaked in 2010 and appears to be declining quite rapidly. When coupled with shrinking energy consumption, that all but guarantees a shrinking GDP in the future, since energy is really just a way of leveraging human labour in the production of goods. When both are shrinking, there is really no way of maintaining a growth economy.

  38. Davy on Wed, 9th May 2018 4:57 am 

    Yea, this is a systematic thing and beyond human management at least in regards to the gradient. The intensity of the gradient is open for management and at this point involves mostly behavior. We can change the rate of change. Globalism was a bubble and the product of Ponzi thinking. These things always end. The big question is how and when. I think that is why I am here and not the if.

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