China’s been busy. This would be a good time to buy yuan as a hedge against the US fiat dollar.
7.000 yuan = $1372
Yuan reaches record high against the US dollar
Further appreciation predicted, which would fuel inflation on the mainland and in Hong Kong
A petrodollar is a United States dollar earned by a country through the sale of its petroleum (oil) to another country. The term was coined in 1973 by Georgetown University economics professor, Ibrahim Oweiss, who recognized the [...]
February 20, 2013
Bloomberg reported that International Energy Agency’s chief economist, Fatih Birol, said the prices of oil are harming Europe, which will need to spend 500 billion euros on oil imports this year, over 200 billion euros more than average.
As quoted in the market news:
Prices are very high,” he said in a Bloomberg Television interview. The “current level of oil prices is a major impact on the global economy, but [...]
From Carpe Diem:
1. The Department of Energy released its weekly report today on U.S. crude oil production and reported that domestic oil output averaged 6.818 million barrels per day for the week ending November 23, which was the highest amount of domestically produced oil since the first week of February 1994, almost 19 years ago.
As a result of the advanced drilling technologies (hydraulic fracking and horizontal drilling) that starting unlocking [...]
The sharp increase in oil prices following the European Union’s oil ban against Iran (July 1) has cost the 27-member bloc nearly $7bln in the past two months.
While the average oil price stood at $95 in June (one month before the EU sanctions were put into effect), the figure increased to $102.5 and $107.5 in the two months after the implementation of the embargos.
The European officials have put the total [...]
EU to implement sanctions against Iran July 1 as planned
The EU’s sanctions against Iran — including a ban on oil imports and a ban on the provision of insurance for tankers shipping Iranian oil – will come into force as planned on July 1, EU foreign ministers said Monday.
Basically banning Iranian exports… unless China/Russia insure the Iranian oil ships AND buys their oil.
The commander of Iran’s ground forces, Ahmad-Reza Pourdastan, was [...]
China Tells US What It Can Do With Its Iran Oil Sanctions
While the US magnanimously decided to exempt several nations from U.S. sanctions on Iranian oil imports, it appears the Chinese government has indicated it has no plans to change its position on oil purchases from Iran. As Voice of America reports, China’s FinMin spokesman Liu Weimin said the purchases are necessary, because of its economic development, describing their ‘purchase channels’ as [...]
NEW YORK (Commodity Online): Iran is reportedly accepting Yuan as a settlement currency for its oil trade with China, posing a significant threat to the dominance of the US Dollar as the international trade currency, especially if other countries start to barter similar deal
As per the Financial Times, Iran uses the Yuan to purchase goods from China. Some of the trade is even in barter form. For eg; China’s Zhuhai Zhenrong [...]
Managing strategic petroleum reserves - The Wall Street Journal suggests today that part of the latest surge in China’s oil imports is attributable to a desire to boost the country’s oil stockpiles. The Wall Street Journal reportsthat for 2012:Q1,
China’s crude imports rose 11% from the year-ago quarter, a much stronger pace than full-year 2011′s increase of 6%, the China’s General Administration of Customs said…. China has brought new storage facilities online in recent months, said [...]
By Muriel Boselli
PARIS – Oil consumer nations are set to pay a record $2 trillion this year for oil imports if crude prices do not fall, the International Energy Agency (IEA) said on Tuesday, undermining economic recovery.
Crude hit $128 a barrel this month, only $20 short of its 2008 peak, and is up more than 15 percent since January, largely because of sanctions against oil producer Iran.
“For the first time [...]
Japan states it shall continue to import Iranian oil and ignore Us requests to stop:
Agencies reported that Japan will continue to import as much Iranian crude oil as it needs.
Mr Kinichi Kumano Japanese ambassador to Tehran said that Japan has been put under pressure to reduce its use of Iranian crude by the United States which has imposed tough sanctions against Iran’s energy and banking sectors.
Mr Kinichi Kumano said [...]
Wolf Richter www.testosteronepit.com
Republicans have been out in force, trying to tar President Obama with gas prices that are approaching $4 a gallon, and that appear to be shooting for an all-time high into the driving season. But no one has even tried to out-claim Newt Gingrich, who in his desperation claimed that gas would miraculously plunge to $2.50 a gallon if he became President but would hit a world-ending $10 a [...]
China increases Iranian oil imports as West boycotts them:
Iranian President Ahmadinejad to visit Bejing, China, in March:
The front pages of three Greek newspapers in Athens on Thursday, depicting German Finance Minister Wolfgang Schaeuble, from left to right, Dimokratia “In the gas chamber,” Eleftheros Typos ”Schaeuble’s Junta” and Ta Nea ”What the Germans want”. Photo: AP
The regime of drastic cuts has tipped the economy into a violent downward spiral. They thought that private industry would muddle through as the state went through the austerity mincer. What the [...]
Abdalla el-Badri, Opec secretary-general, on Tuesday warned of volatile crude prices as the oil market adjusted to Europe’s embargo on Iranian oil imports.
In an interview in London, Mr El Badri said it would take time for European Union countries to find a replacement for the 500,000 barrels a day of oil it normally imported from Iran. “During this period, there will be volatility … and price swings,” he said.
But he [...]
European Union foreign ministers are expected to announce a phased ban on the purchase of oil from Iran at a meeting on Monday in Brussels.
It would be the latest EU measure to be introduced in retaliation for Iran’s nuclear programme.
The EU currently buys around 20% of Iran’s oil exports.
Tehran denies that it is trying to develop nuclear weapons and says talks and not sanctions are the only way to resolve [...]
Middle East Confidential
January 17, 2012
Saudi Arabia oil minister has affirmed that his country has the capacity to fill any loss of crude oil production that may occur from the new international sanctions banning all oil imports from Iran for its persistence to continue its nuclear program.
“I believe we can easily get up to 11.4, 11.8 (million barrels a day) almost immediately, in a few days, because all we need [...]
How close is the west getting to all-out conflict with Iran? As 2012 gets under way, the question is right at the top of the international security agenda. Hardly a day goes by without some striking news from the region – be it Iran’s decision to enrich uranium at a new underground site; or the unexplained killing of another Iranian nuclear scientist; or Iran’s threat to close the Strait of [...]
January 8, 2012
Ali Ashraf Nouri, a senior commander in Iran’s Revolutionary Guard, told Khorasan daily on Sunday that the Iranian government has decided to close the strategic Strait of Hormuz at the mouth of the Persian Gulf if the country’s oil exports are blocked.
Also on Sunday, Iranian Army Commander Brigadier General Habibollah Sayyarisaid Iran can block the Strait of Hormuz “easily.”
The threat comes as the European Union prepares to embargo [...]
Japan has become the latest country to hint at its intention to ignore US-led oil sanctions on Iran, after South Korea’s recent dismissal of Washington’s bid to boycott the Iranian crude
January 7, 2011
“We are not considering banning imports,” Japan Times quoted a Japanese Foreign Ministry official as saying on Friday.
On New Year’s Eve, US President Barack Obama signed into law fresh economic sanctions against Iran’s Central Bank in an apparent bid [...]
Iran grapples with currency market turmoil
By Farhad Pouladi (AFP)
TEHRAN — Iran’s currency market was in turmoil Wednesday as the central bank imposed draconian measures to try to shore up its beleaguered rial in the face of existing and looming Western sanctions.
The bank was imposing a fixed low rate of 14,000 rials to the dollar on the open market, traders said.
Some had shuttered their shops in the centre of Tehran, refusing [...]
As if the situation in the Gulf was not enough on edge, here comes Europe with news, via Reuters, that EU governments have reached a deal to ban Iranian oil imports. The only thing pending is the determination of the starting date and other details. The result, as expected, is another leg up in crude. Sooner or later, this relentless rise higher will spill through to the pump, which according [...]
Plan B: The plant Gevo is retrofitting in Luverne, Minnesota.
BY KEVIN BULLIS
Gevo, a prominent advanced-biofuels company that has received millions in U.S. government funding to develop fuels made from cellulosic sources such as grass and wood chips, is finding that it can’t use these materials if it hopes to survive. Instead, it’s going to use corn, a common source for conventional biofuels. What’s more, most of the product from its first [...]
December 14, 2011
Over the past few weeks Iran, already beleaguered by a raft of existing U.N. and national sanctions, has seen the U.S. and the European Community adding further economic punishments.
Last week the U.S. Senate on a 100-0 vote passed legislation to penalize foreign banks that do business with Iran’s central bank, while this week the U.S. House of Representatives will vote on legislation to punish nations and companies [...]
“Never before has the world been as close to war with Iran” Der Speigel. — This seems to be another level of austerity program. — How much of the economic fix depends on crushing Iran’s economy? See: “The EU added 143 Iranian entities and 37 individuals to the list of those who assets would be frozen and who are banned from entering the 27-nation bloc. A decision on whether or [...]
TEHRAN – Iran warned the West on Sunday any move to block its oil exports would more than double crude prices with devastating consequences on a fragile global economy.
“As soon as such an issue is raised seriously the oil price would soar to above $250 a barrel,” Foreign Ministry spokesman Ramin Mehmanparast said in a newspaper interview.
The U.S. Senate voted on Thursday to penalize foreign financial institutions that do business [...]
Former military leaders call for 30% cut in oil consumption – CNN …
By Charley Keyes
Osama bin Laden may have left a clue about one of the West’s greatest vulnerabilities: reliance on oil imports.
“When we killed bin Laden, we saw oil tanker designs on his work desk,” Gen. James Conway, the former Marine Corps commandant, said in a report released late Tuesday.
Conway was part of a group of 11 recently retired three- and [...]
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — The U.S. trade deficit jumped 15.1% in May to the highest level in almost three years, largely because of the increased cost of oil imports.
The trade gap widened to a seasonally adjusted $50.2 billion from $43.6 billion in April, the Commerce Department reported Tuesday. It was the biggest monthly deficit since October 2008.
Economists surveyed by MarketWatch forecast the trade [...]
WASHINGTON — President Obama, facing voter anger over high gasoline prices and complaints from Republicans and business leaders that his policies are restricting the development of domestic energy resources, announced Saturday that he was taking several steps to speed oil and gas drilling on public lands and waters.
It was at least a partial concession to his critics at a time when consumers are paying near-record [...]