Text taken from the Telegram channel of neinsider
Commentary by Russian military journalist Boris Rozhin is in italics
[ColonelCassad] Panic is setting in in the US.
| It is? I must have missed it while taking my afternoon nap. |
| Apparently we are, but we’re also selling more oil pumped out of the ground than before, making the strategic reserve considerably less important, it seems to me. I searched the Bloomberg site for articles on the US Strategic Oil Reserve, and in my lack of sensitivity and shallow understanding of things financial I notice no panicking at all. But look for yourself, dear Reader: Link |
Commercial crude oil inventories fell by 6.23 million barrels in a week—the largest drop since early February. Gasoline and distillate inventories also fell sharply—by 6.08 million and 4.49 million barrels, respectively, bringing overall gasoline inventories to their lowest seasonal level since 2014.
The most ironic thing is that the sell-off of oil and petroleum products from the United States to foreign markets is occurring against a backdrop of record-high fuel prices at the pump within the country. Prices have risen by a third since February and will continue to rise as reserves are depleted. And the closer the fall elections get, the more acute the fuel issue becomes for the United States.
Rumors have circulated that Trump may impose export restrictions: "Trump may restrict US exports to contain prices at home before the elections," writes The Economist.
| He might. He also might encourage increased production and the building of more refineries to handle the flow. |
| Vacillation. That’s a new definition of the word that I was not familiar with. |
1. In fact, Trump simply has no other choice, since before the election he must somehow maintain gasoline prices in the US. Even at the cost of selling off reserves. 2. At the same time, it will no longer be possible to return prices to pre-war levels, as reported by the US government, indicating that in 2026 prices "as before" will not return.
| Before, as in under the Biden-Harris Politburo? I should hope not. |
4. In the future, the US will have serious problems replenishing strategic reserves, since they will have to buy oil at new market prices.
| That’s certainly one perspective on the situation. |
| And, not or — adding a bunch of smaller efforts results in something much bigger… |
| Let us all together look to see what the future brings in the near future. It’ll be an adventure! |
OPEC+ hikes oil production quotas without mentioning UAE withdrawal
| Joining America in driving prices downward. |
The seven major producers will add “188,000 barrels per day” to their total production quota for June, as part of “their collective commitment to support oil market stability,” according to a statement published by OPEC+. The statement makes no mention of the United Arab Emirates, which quit the body this week.
Oil market analysts had widely expected the increase of 188,000 barrels, which is similar to the 206,000-barrel daily increases OPEC+ announced in both March and April, subtracting the portion allotted to the UAE.
But raising the quota on paper may not have much impact on actual production, which is already short of the limit.
Untapped OPEC+ reserves are mainly located in the Gulf region, and exports there are trapped by the blockade of the vital Strait of Hormuz, imposed by Iran in response to the US-Israeli strikes that started the war on February 28.