“Incredible to see on a chart exactly what happened to natural gas prices in both Europe and the United States at the exact moment that it was announced that a US export terminal would take longer to come back online than previously expected.”
Incredible to see on a chart exactly what happened to natural gas prices in both Europe and the United States at the exact moment that it was announced that a US export terminal would take longer to come back online than previously expected. https://t.co/sbuSHQf6cG pic.twitter.com/h2m9JH3gRq
— Joe Weisenthal (@TheStalwart) June 14, 2022
What’s Going On?
There was an explosion at the Freeport natural gas facility on June 8. Price of natural gas fell in the US and rose in Europe.
Prices fell in the US because Freeport is a Liquid Natural Gas (LNG) facility. It produces LNG to exports.
In a Press Wire today Freeport announced “completion of all necessary repairs and a return to full plant operations is not expected until late 2022.”
That’s good news for US consumers and bad news for Europe.
18 Percent Decline in One Day
Spotlight on Sanctions
Sanctions on Russia has left equipment key for the functioning of the Nord Stream gas pipeline stuck abroad, signaling shipments via the crucial route to Germany may be curbed for some time https://t.co/8jiaC0EO9b
— Bloomberg (@business) June 14, 2022
“Sanctions on Russia has left equipment key for the functioning of the Nord Stream gas pipeline stuck abroad, signaling shipments via the crucial route to Germany may be curbed for some time.”
What About Compressors?
https://twitter.com/Paulhenleyabz/status/1536705984701288449
As a result of sanctions and inability to get parts, guess what?
No Parts, No Gas
👹💣💥
New shots in Russia’s energy war with the West have just been fired. @Gazprom has announced cuts of gas flows to Europe through Nord Stream pipeline by 40%, and it blames @Siemens & 🇪🇺 sanctions. Colleagues at @CarnegieRussia saw it coming, and it might get even worse. 1/ pic.twitter.com/D6nUJztHVc— Alexander Gabuev 陳寒士 (@AlexGabuev) June 14, 2022
France Largest LNG Buyer in the World
“As the #EU is considering stricter sanctions against 🇷🇺#Russia, 🇫🇷#France has increased its imports to become the largest buyer of LNG in the world”#Putin is slow but has finally caught on to #Macron‘s savvy. #Gazprom cuts gas flows to Europe through Nord Stream pipeline ≈40% pic.twitter.com/6Eaw5P8kbs
— Devi Rhamesz (@ChrliesWarchest) June 14, 2022
“As the #EU is considering stricter sanctions against #Russia, #France has increased its imports to become the largest buyer of LNG in the world”
Macron’s Savy? Really?
I keep returning to the following picture.
Instead of getting natural gas from hundreds of miles away over existing pipelines we compress natural gas in the US then ship it 4,700 miles away Europe.
Meanwhile, Russia fearing eventual European cutoff is building new pipelines to China.
De-globalization to punish Russia and China is seriously impacting global supply chains. Prices are rising everywhere.
Worst of all, with the increased energy prices, Russia is making as much money as before selling less gas and oil.
Russian Ruble
#EconWatch: Pres. #Biden‘s ill-advised sanctions against #Russia have failed to destabilize the ruble. Since sanctions, the ruble has become the stronger than the US dollar. This makes Biden’s comments about ruble rubbish look foolish. pic.twitter.com/gAlXwJtsH5
— Steve Hanke (@steve_hanke) June 13, 2022
Note: Hanke inverted the chart so that up, not down means strengthening.
Biden Bragging About the Ruble
As a result of our unprecedented sanctions, the ruble was almost immediately reduced to rubble.
The Russian economy is on track to be cut in half.
It was ranked the 11th biggest economy in the world before this invasion — and soon, it will not even rank among the top 20.
— President Biden (@POTUS) March 26, 2022
“As a result of our unprecedented sanctions, the ruble was almost immediately reduced to rubble.“
That bragging lasted a few days. A down move in the Ruble chart is appreciation.
Shortly after the war started, it took 132 rubles to buy a dollar. After all the sanctions kicked in, and the price of energy soared, the Ruble soared as well.
Now it only takes 56 rubles to buy a dollar. Since March, the Ruble became the strongest currency in the world vs the US dollar.
Policy Responses
Refusal to buy oil and Gas from Russia is economic madness. And it’s even helping Russia finance the war.
Meanwhile, supply chain disruptions and de-globalization are driving prices up everywhere.
De-globalization is underway. A key ramification is higher inflation.
For further discussion, please see De-Globalization: New Supply Chains Are Inefficient and Will Drive Up Inflation
We have economic illiterates running the country and running the Fed. The average Joe is getting killed.
Dear President Biden, the above charts speak for themselves. If you want to lower inflation, stop the sanctions.
This post originated on MishTalk.Com.
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Mish
When weren’t they? There are no poor people in government.
Let Russians eat Chinese and Indian cake. I’m from one of these countries and trust me, you don’t want to live in any of these countries. More Russians, Chinese and Indians continue to want to leave their countries for good reasons.
I bet you are looking forward to grade 7! 🙂
There is always someone who can take advantage of any situation.
those things which central banks are going to want to hold and exchange
value in when they are trying to transact.” – Ray Dalio
Lol!
The Ukraine situation is nothing like Iraq.