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Oil Irony: US and UK to Ban Russian Oil, Russia Threatens the Same

The energy irony of the day is both the US and Russia are threatening to halt deliveries of Russian oil. Russia ups the ante with natural gas.
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US Crude Spikes to $130

Both Sides Now

Both the US and Russia are threatening to halt deliveries of Russian oil. Russia ups the ante with natural gas.

The price of US crude jumped jumped to $130, gold rose $80 by 4% to a new record, and stocks are in the gutter again as Biden announces a ban on Russian oil

US Ban

President Biden will announce later today a Ban on Imports of Russian Oil.

The U.S. ban will include Russian oil, liquefied natural gas and coal.

In addition, both Shell and British Petroleum announced they will withdraw from Russian oil and gas. They will immediately halt all spot purchases and end all dealings with Russia according to the Wall Street Journal.

UK Too

Russia Threatens to Halt Energy Exports 

Yesterday, Bloomberg reported Russia Threatens to Cut Natural Gas Flows to Europe Via Nord Stream 1

Russia has the right to take actions that “mirror” the penalties imposed on the Russian economy, Deputy Prime Minister Alexander Novak -- who’s also in charge of energy affairs -- said in a televised speech late Monday. He said no decision to shut off Nord Stream 1 has yet been taken, and the pipeline is currently operating “at its full capacity.”

The comments come after a day of wild swings on European gas markets, with prices at one point surging by almost 80% amid fear of disruption to supplies from Russia. 

Germany has pushed back against proposals for a ban on oil imports. German Chancellor Olaf Scholz said Monday that Russian oil and gas are of “essential importance” to the European economy. Roughly 40% of EU gas imports and one quarter of its oil come from Russia. 

Russia warned that any such move could have “catastrophic consequences for the world market” with prices surging to $300 a barrel or more. 

Brave Front by the EU

The EU claims it can "reduce our demand for Russian gas by 2/3 before the end of the year.

Really? And you didn't do this before? 

Not That Simple

Spare Capacity

What About Japan?

Green is Dead?

And the US still has sanctions on Iran and Venezuela!

Team Biden Headed to Venezuela

How stupid is this?

U.S. Officials Meet With Regime in Venezuela, to Discuss Oil Exports to Replace Russia’s

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I expect a decline of 65% or so from the top, so this is just a down payment.

I repeat my February 23 comments Most People Have No Idea How Much Stocks are Likely to Crash

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A recession fueled by collapsing demand, a liquidity crunch, and fading stimulus effects is coming up. Inflation sure doesn't help.

Steph Pomboy made those comments yesterday.

I said the same thing on March 3: A Recession Looms, Blame the Fed and Biden, Not Russia

Macro Dream Team Videocast Parts One and Two

Pomboy is part of a Dream Team of macro analysts. Please play the video. You can find it here: Macro Dream Team Videocast Parts One and Two

I concluded "Very few people see a recession coming. But the dream team does. Do yourself a favor and watch both parts. Hopefully they are more persuasive than I am."

This post originated on MishTalk.Com.

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