Saturday, May 21, 2022

Has Gasoline Price Shock Triggered Demand Destruction Yet? And Where Will Gasoline Prices Go from Here?

by Wolf Richter, Wolf Street:

There’s some demand destruction. But oil bounced again, gasoline might be next. My guess is a long-drawn-out zigzag higher.

Following the dizzying spike in gasoline prices, the question arises when demand destruction will set in, where people start driving less, start taking it easier to conserve gas when they do drive, or start prioritizing the most economical vehicle in their garage. If enough people do it, demand begins to decline, and gas stations have to compete for dwindling business. Demand destruction is what would cause the price to come down again. Are we there yet?

More countries agree to ruble payments for gas – Russian deputy PM

from RT:

Moscow is awaiting decisions from other importers, Alexander Novak says

Several buyers of Russian natural gas have agreed to switch to payment in rubles, Russian Deputy Prime Minister Alexander Novak said on Friday.

“We expect the decision [to switch to rubles] from other importers,” Novak added, in comments published in the ministry’s magazine, without disclosing the identities of the customers who have already switched.

Harvard Study: Those Who Live Closer to Fracking Sites Die Earlier

by Werner Rügemer, Strategic Culture:

People are dying for BlackRock’s rising profits not only in faraway Afghanistan, but also in the U.S. itself.

In January 2022, Harvard University published the results of a study: people over 65 who live near U.S. fracking sites die earlier than people who do not live in such a neighborhood. Fracking has been practiced in the USA for decades. Environmental damage is well known. But now, for the first time, it’s been studied: are people dying because of it?

The elaborate study was conducted by 10 researchers led by Longxiang Li at the School of Public Health at the elite Harvard University: Exposure to unconventional oil and gas development and all-cause mortality in Medicare beneficiaries. Completed July 17, 2020, the study was published Jan. 27, 2022, in the journal Nature Energy. As early as August 2021, the study had been presented at the annual meeting of the International Society for Environmental Epidemiology (ISEE). So anyone who wanted to know could know. The U.S. government and the German government and the European Union, which have now ordered much more U.S. fracking gas because of the Russia boycott.

JUST IN – Germany places #Gazprom subsidiary under state control. The company operates over 25% of the country’s gas storage capacity.

Putin: Existing Contracts on Russian Gas Will Be Frozen in Case of Failure to Pay in Rubles

from Sputnik News:

Last week, the Russian president ordered the Central Bank and government to work out the means for countries designated as ‘unfriendly’ by Moscow to pay for Russian gas in rubles. The G7 slammed the move and vowed not to pay. However, Berlin, one of the biggest consumers of Russian gas, has since inquired about how such transactions may take place.

KREMIN THREATENS TO HALT GAS SUPPLIES AS EUROPE BALKS AT PAYING IN ROUBLES

by Harvey Organ, Harvey Organ Blog:

GOLD AND SILVER FALL AS WE CONCLUDE OPTIONS EXPIRY ON THE COMEX//OTC AND LBMA EXPIRY OCCURS ON MARCH 31//GOLD CLOSED DOWN $14.65 TO $1939.95//SILVER FELL BY 30 CENTS TO $25.10//GOLD STANDING FOR MARCH AT THE COMEX ADVANCED BY A STRONG 58,000 OZ//NEW STANDING 36.678 TONNES WHICH IS HUGE FOR A NON DELIVERY MONTH//SILVER HAS A SMALL QUEUE JUMP OF 55,000 OZ//NEW STANDING 52.915 MILLION OZ//ANDREW MAGUIRE A MUST VIEW //ALASDAIR MACLEOD AN EXCELLENT REPORT//JAPAN’S 10 YR BOND YIELD SKYROCKETS TO .26%//JAPANESE YEN FALTERS//JAPANESE AUTOMAKERS ARE HAVING TROUBLE IN PRODUCTION DUE TO SHORTAGE OF RAW MATERIALS AND SEMI CONDUCTORS//CHINA CONTINUES WITH MORE LOCKDOWNS HURTING SHIPPING//KREMIN THREATENS TO HALT GAS SUPPLIES AS EUROPE BALKS AT PAYING IN ROUBLES//MARIUPOL FALLS

EXXON IS MINING BITCOIN WITH EXCESS GAS: REPORT

by Namcios, Bitcoin Magazine:

The largest U.S. oil producer Exxon Mobil is considering expanding its North Dakota bitcoin mining pilot program to further reduce the volume of natural gas it routinely burns off or flares into the atmosphere, Bloomberg reported Thursday.

People familiar with the matter told the news outlet that the oil giant has an agreement with Crusoe Energy Systems to redirect gas that would otherwise be wasted from an oil well pad to mobile bitcoin mines. The report said the pilot project launched in January 2021 in North Dakota’s Bakken and expanded in July; now, it consumes up to 18 million cubic feet of gas per month that Exxon couldn’t otherwise monetize.

It’s Not Just Energy – It’s Also Metals

by Martin Armstrong, Armstrong Economics:

The outrageous sanctions imposed by Biden on Russia has undermined the entire world economy. Sanctions have never worked and this time they were designed to try to hurt the Russian people so profoundly that they would overthrow Putin. The Ukrainians are even naming Alexander Bortnikov, the Russian Director of the Federal Security Service and a member of Putin’s inner circle, as a successor to the president. Bortnikov has come out and said that Stalin’s Great Purge was necessary whereas Putin rejected Lenin. Be careful what you wish for, as they say.

NEW – Russia to accept #Bitcoin as payment for energy exports

The Petrodollar And Gold (And Silver)

by Dave Kranzler, Investment Research Dynamics:

The precious metals market commentary below is an excerpt from the latest issue of the Mining Stock Journal, released on March 17th. The issue also offered an opinion on the $MAG Silver acquisition of Gatling Exploration ($GATGF, $GTR.V), $AEM and Paramount Gold ($PZG), among other companies I cover. You can learn more here: Mining Stock Journal.

By now I’m sure most of you have read the various analyses – not found in the mainstream financial propaganda – explaining why the U.S. sanctions levied against Russia will back-fire and trigger a reset of the monetary system. In brief, the U.S. has “weaponized” the dollar’s status as the reserve currency by imploring western Central Banks to freeze Russia’s foreign currency reserves and banking assets held at western Central Banks (China has not put a freeze on Russia’s currency reserves). This has in turn triggered a move by many of Russia’s trade partners to work around this by settling trade with Russia either in respective domestic currencies or in gold.

Planning To Use Oil Crisis, the Global Climate Change Agenda Is Triggered – Biden Declaring Climate Emergency, IEA Proposing Global Economic Changes, AOC and Bernie Sanders Join Drumbeat

from The Conservative Treehouse:

We could all see this coming.  The Ukraine-Russia conflict creates the opportunity for the Build Back Better initiatives to get triggered.  None of this is happening organically.  All of this is opportunism based on a series of dominos purposefully triggered.  Three government solutions to rising oil prices surface simultaneously in an effort to exploit the crisis they created.

Petrodollar Cracks: Saudi Arabia Considers Accepting Yuan For Chinese Oil Sales

from ZeroHedge:

One of the core staples of the past 40 years, and an anchor propping up the dollar’s reserve status, was a global financial system based on the petrodollar – this was a world in which oil producers would sell their product to the US (and the rest of the world) for dollars, which they would then recycle the proceeds in dollar-denominated assets and while investing in dollar-denominated markets, explicitly prop up the USD as the world reserve currency, and in the process backstop the standing of the US as the world’s undisputed financial superpower.

India To Buy More Russia Oil, Working On Rupee-Ruble Settlement Mechanism; West “Understands”

from ZeroHedge:

In the latest sign that western sanctions against Russia are really just that, and exclude much of the non-western world, Delhi announced overnight that it wants to keep its key trading partner on board despite Western attempts to isolate Moscow through sanctions with Reuters reporting that according to two Indian officials, India may take up a Russian offer to buy crude oil and other commodities at a discount.

And while U.S. officials have said in recent weeks they would like India to distance itself from Russia as much as possible, they recognize its heavy reliance on Moscow for everything from arms and ammunitions to missiles and fighter jets. In other words, India quietly gets a carte blanche to continue trading with Russia in violation of western sanctions.