Oil Problems: Storms two days ago knocked off-line two of the three crude oil to ship loading platforms in the Eastern Black Sea. One of the platforms will be out of service for probably many months and the other will have to be replaced. The three loading stations typically load 1.2 million barrels a day.
The initial response of oil market “experts” said this loss of oil availability threatens to cause a "global failure". Scary language, but given the world consumes 97.1 million barrels a day, we do not see the loss of 800,000 barrels as a threat to cause a global economic failure.
More of a concern is 500 union members who work at the Chevron refinery in the San Francisco area went on strike yesterday.
By signing a Russian oil embargo into law, Biden has allowed China and India to buy oil at a 30% discount. Meanwhile, Americans have to pay record high gasoline and diesel prices while China and India get it cheap.
Keep in mind Europe has no such embargo.
Brazil removed its ethanol import tariff through the end of the year to try to curb fuel prices. There have been several of the last 20 years that Brazil was the USA’s largest ethanol importer.
Canada Pacific Railroad and the employee union agreed to binding arbitration; operations have resumed.