Headlines:
Big Oils Sudden Decision To Exit Russia Comes At A High Price
Russian Gas Via Yamal Pipeline Halts Flows To Germany
Oil Hits Almost Decade High Before Iran Throttles The Rally
Russian Users Are Using Crypto Loopholes To Skirt Sanctions
Stocks end a choppy session lower as investors monitor Russia-Ukraine developments. The DOW turned negative ahead of final hour trading, as investors are beginning to have second doubts of a continuing rally.
WTI crude shot up sharply to 116.51 and has retreated to the 108 level. There is a lot of misinformation regarding how much Russian oil the U.S. uses. We import roughly 245 million barrels of crude oil and petroleum products each year, amounting to a one-year increase of 24% over 2020. Nearly 8% of U.S. Russian imports that year came from Russia, based on data from the statistical arm of the U.S. Energy Department.
The U.S. imports Russian oil, but it is not highly dependent on the country for its supplies. According to the AFPM, imports of Russian crude oil represent three percent of U.S. crude oil imports and one percent of the total crude oil processed by U.S. refineries. By contrast, the U.S. imported 61 percent of its crude oil from Canada, 10 percent from Mexico, and six percent from Saudi Arabia in the same year.
About half of Russia’s exported oil – roughly 2.5 million barrels per day – is shipped to European countries, including Germany, Italy, the Netherlands, Poland, Finland, Lithuania, Greece, Romania, and Bulgaria.
The hype you hear about curbing Russian oil products in the U.S. is not all that important and more political than anything else.
As usual, we have included below the headlines and news summaries moving the markets today.
The Market in Perspective
| Here are the headlines moving the markets. | |
 |
Big Oils Sudden Decision To Exit Russia Comes At A High PriceThe impact of the Russia/Ukraine crisis is growing, as big oil companies that had entered into various deals with Russian oil companies are now looking to withdraw. These actions will lead to collateral damage in the weeks and months to come, as production losses from the moves inevitably pile up, rendering an already-tight oil market constrained by years of under-investment in new reserves even less capable of meeting rising global demand. BP was the first major Western oil firm to announce it would cancel Russian-based business ventures, warning Read more at: https://oilprice.com/Energy/Crude-Oil/Big-Oils-Sudden-Decision-To-Exit-Russia-Comes-At-A-High-Price.html |
|
UN Nuclear Watchdog: Iran Sharply Increased Its Stockpile Of Enriched UraniumThe UN’s nuclear watchdog says Iran has sharply increased its stockpile of enriched uranium amid talks to revive a 2015 agreement to curb Tehran’s atomic program. Several media outlets said the International Atomic Energy Agency (IAEA) noted in its latest confidential quarterly report on March 3 that Iran now has more than 33.2 kilograms of highly enriched uranium with a purity of up to 60 percent, a level which means it can quickly be processed to create weapons-grade material. It takes around 25 kilograms of weapons-grade uranium, which is around Read more at: https://oilprice.com/Latest-Energy-News/World-News/UN-Nuclear-Watchdog-Iran-Sharply-Increased-Its-Stockpile-Of-Enriched-Uranium.html |
|
Kazakhstan Braces For Russian Sanction FalloutWith Russia poised to enter a period of economic recession under the weight of punishing international sanctions, neighboring Kazakhstan is scrambling to minimize the fallout. This week, the government in Nur-Sultan was poised to discuss the drafting an anti-crisis plan to respond to the likely negative socio-economic consequences for Kazakhstan arising from the events in Ukraine. The plan is to consider the development of an anti-crisis action plan amid a worsening geopolitical situation and tougher anti-Russian sanctions, Read more at: https://oilprice.com/Geopolitics/Asia/Kazakhstan-Braces-For-Russian-Sanction-Fallout.html |
|
Russian Gas Via Yamal Pipeline Halts Flows To GermanyNatural gas flows from Russia to Germany via the Yamal pipeline stopped in the westward direction on Thursday, according to data from the Gascade pipeline operator cited by Reuters. Flows of natural gas from Russia on the Yamal-Europe pipeline via Belarus to Poland and Germany have been volatile and mostly running east from Germany to Poland since the end of December. Volatile and lower than typical Russian natural gas supply to Europe in the fourth quarter of 2021 contributed to the energy crisis in Europe, which had its gas storage levels Read more at: https://oilprice.com/Latest-Energy-News/World-News/Russian-Gas-Via-Yamal-Pipeline-Halts-Flows-To-Germany.html |
|
Russian Users Are Using Crypto Loopholes To Skirt SanctionsUnregulated crypto firms in the UK are facing calls to close loopholes which allow Russians to evade sanctions. Industry body Crypto UK said it is engaged in discussions with the Treasury and MPs about the possible use of digital assets to evade economic sanctions. In a letter, Crypto UK urged unregulated firms not to become a loophole for sanctioned Russians and to freeze or block illicit transactions.As many of you know, we have a two-tier system in the UK where only 34 crypto companies hold a licence from the Read more at: https://oilprice.com/Latest-Energy-News/World-News/Russian-Users-Are-Using-Crypto-Loopholes-To-Skirt-Sanctions.html |
|
Global Battery Demand To Increase 15-Fold As EV Boom Takes OffAs the energy transition quickens and countries and consumers strive to decarbonize, global battery demand could surge exponentially and approach nine terawatt-hours (TWh) annually by 2030, 15 times the levels seen in 2021. Rystad Energy research shows that although global battery demand in 2021 stood at 580 gigawatt-hours (GWh), more than double 2020s total, global supply was still able to keep up. However, that is set to change in the coming years as the appetite for battery technologies in passenger vehicles and stationary storage grows Read more at: https://oilprice.com/Energy/Crude-Oil/Global-Battery-Demand-To-Increase-15-Fold-As-EV-Boom-Takes-Off.html |
|
Fantasy author raises $19 million on Kickstarter in two days to self-publish new novelsBrandon Sanderson asked folks on Kickstarter for $1 million to self-publish four novels her wrote during the pandemic. They funded him in 35 minutes. Read more at: https://www.cnbc.com/2022/03/03/brandon-sanderson-kickstarter-tops-19-million-in-two-days.html |
|
Stocks making the biggest moves midday: Best Buy, Kroger, Burlington and moreThese are the stocks posting the largest moves in midday trading. Read more at: https://www.cnbc.com/2022/03/03/stocks-making-the-biggest-moves-midday-best-buy-kroger-burlington-and-more.html |
|
Russian billionaires lose $80 billion in wealthSanctions on oligarchs, along with the collapse of the Russian ruble, have swiftly brought the end of an era for an entire class of Russian elites. Read more at: https://www.cnbc.com/2022/03/03/russian-billionaires-lose-over-80-billion-in-wealth.html |
|
Rivian rolls back big price increases on preorders after customer backlashAn outcry from customers led Rivian’s CEO to backtrack on a hefty price increase that would have affected vehicles already ordered. Read more at: https://www.cnbc.com/2022/03/03/rivian-rolls-back-big-price-increases-on-pre-orders-after-customer-backlash.html |
|
Rising oil prices could hit cigarette demand as smokers pay more at the pumpRising prices at the gas pump will likely hurt cigarette demand, according to Barclays analyst Gaurav Jain. Read more at: https://www.cnbc.com/2022/03/03/rising-oil-prices-could-hit-cigarette-demand.html |
|
What’s next for Pfizer, Moderna beyond their projected $51 billion in combined Covid vaccine sales this yearMarket analysts are debating what future Covid vaccine demand will look when Covid becomes an endemic, seasonal virus. Read more at: https://www.cnbc.com/2022/03/03/covid-pfizer-moderna-project-51-billion-in-combined-vaccine-sales-this-year.html |
|
Have a case of buyer’s remorse? Why high inflation may be to blameResearch finds the more financially constrained you feel, the less happy you’ll likely be with what you buy. Read more at: https://www.cnbc.com/2022/03/03/inflation-may-make-it-more-likely-that-youll-regret-your-purchases.html |
|
Supreme Court lets GOP Kentucky attorney general defend state’s restrictive abortion lawThe Supreme Court has yet to rule on a Mississippi case that could end abortion protections guaranteed by Roe v. Wade. Read more at: https://www.cnbc.com/2022/03/03/supreme-court-lets-gop-kentucky-attorney-general-defend-abortion-law.html |
|
Here’s why Ford didn’t spin off its electric-vehicle businessWall Street wanted Ford to spin off its EV business, but Ford says it’s better to keep it in-house — with more independence. Read more at: https://www.cnbc.com/2022/03/03/why-ford-didnt-spin-off-its-electric-vehicle-business.html |
|
Here are the Russian oligarch yachts being seized as sanctions sink inRussian oligarchs are seeing their yachts seized by European authorities as sanctions begin to target them. Read more at: https://www.cnbc.com/2022/03/03/here-are-the-russian-oligarch-yachts-being-seized-as-sanctions-sink-in-.html |
|
Retailers start to warn of business impact from Russia’s invasion of UkraineSome retailers, including Victoria’s Secret, are warning about business impacts from the Ukraine crisis. Others, like Nike, have suspended operations in Russia. Read more at: https://www.cnbc.com/2022/03/03/ukraine-news-retailers-start-warn-of-business-impact-from-russian-invasion.html |
|
Facebook says 2021 ‘polar vortex’ sapped 1% off net income thanks to higher energy costsA bout of extreme cold last winter saddled Meta Platforms with additional energy costs, the company told federal regulators in a filing made public last week. Read more at: https://www.cnbc.com/2022/03/03/facebook-says-2021-polar-vortex-brought-higher-energy-costs.html |
|
IEA pushes Europe to wean itself off Russian gas after Ukraine invasion“Nobody is under any illusions anymore,” Fatih Birol, the IEA’s executive director, said in a statement Thursday. Read more at: https://www.cnbc.com/2022/03/03/there-should-be-no-new-gas-supply-contracts-with-russia-iea.html |
|
Bonds & Bullion Bid As Stocks, Crude, & Crypto CrumbleBonds & Bullion Bid As Stocks, Crude, & Crypto CrumbleIt has been 13 years to the day since Barack Obama called the bottom in stocks. On March 3rd, 2009, President Obama said:
And since then the S&P is up 527%…
Source: Bloomberg Today, however, saw stocks lower on the day… but not this much…
Earlier gains in stocks (and drops in oil) came after reports of an imminent Iran deal, but that was walked back quite fast reversing those moves early on. Then remarks from French President Macron regarding his downbeat call with Putin sent stocks reeling lower… Add … Read more at: https://www.zerohedge.com/markets/bonds-bullion-bid-stocks-crude-crypto-crumble |
|
Two Oil Price Scenarios: One Bad, And One CatastrophicTwo Oil Price Scenarios: One Bad, And One CatastrophicAnother day, another record discount for Russian Urals crude, which was offered at a price more than $22 below spot by oil trader Trafigura and still could find no giant…
… confirmed what we previously observed, namely that the commodity world is splitting in two: a bidless market for Russian oil, and (increasingly) offerless for non-Russian. This is the key point that JPMorgan’s commodity strategist Natasha Kaneva makes in a research note earlier today, in which she notes that while the US and its allies have so far stopped short of imposing penalties directly on Russian oil and gas, on Tuesday it became increasingly clear that Russian oil is being ostracized. The preliminary Russian crude oil loadings for March revealed a 1 mbd drop in the loadings from the Black Sea ports, 1 mbd drop from the Baltics and 0.5 mbd drop in the Far East. In addition, there is now also an estimated 2.5 mbd loss in oil products loadings from the Black Sea, for a total loss of 4.5 mbd of Russian crude l … Read more at: https://www.zerohedge.com/markets/two-oil-price-scenarios-one-bad-and-one-catastrophic |
|
“I Have The Biggest D**k In Chicago”: Mayor Lightfoot Accused Of Berating Staff“I Have The Biggest D**k In Chicago”: Mayor Lightfoot Accused Of Berating StaffChicago Mayor Lori Lightfoot has been accused in a new lawsuit of throwing a temper tantrum over a plan to display a Christopher Columbus statue in the city’s annual Columbus parade last fall – threatening to pull the permit for the entire parade and then berating city officials in a ‘hastily called Zoom meeting.’
In a lawsuit against Lightfoot and the city, Former Chicago Park District deputy general counsel George Smyrniotis says he was tasked with hammering out a deal with lawyers for an Italian American group in order to try and settle a lawsuit over Lightfoot’s removal of Columbus statues from the city. According to Timothy King, then the district’s top lawyer, and then-superintendent Michael Kelly, the lawsuit needed to disappear “as soon as possible.” Smyrniotis says that after hammering out the deal to display the Columbus statue in the annual parade (last, and covered up until the very end), Lightfoot flipped out. During the contentious Zo … Read more at: https://www.zerohedge.com/political/i-have-biggest-dck-chicago-mayor-lightfoot-accused-berating-staff |
|
Who’s Got The Gold?Who’s Got The Gold?Authored by Jeff Thomas via InternationalMan.com, In 1971, the US abruptly went off the gold standard, and in making the public announcement, US President Richard Nixon looked into the television camera and said, “We’re all Keynesians now.” I was a young man at the time and had previously bought gold, albeit on a very small scale, but I recall looking into the face of this delusional man and thinking, “This is not good.” However, the world at large apparently agreed with Mister Nixon, and within a few years, the other countries also went off the gold standard, which meant that, from that point on, no currency was backed by anything other than a promise.
Party TimeIt didn’t take long before countries began playing with their currencies. At one time, the German mark, the French franc, the Italian lire, and the British shilling had all been roughly equivalent in value, and four or five of any one of them was worth about a doll … Read more at: https://www.zerohedge.com/commodities/whos-got-gold |
|
Ukraine: UK sanctions oligarchs Alisher Usmanov and Igor ShuvalovBillionaire Alisher Usmanov and Russian ex-Deputy Prime Minister Igor Shuvalov face UK sanctions. Read more at: https://www.bbc.co.uk/news/uk-politics-60611683?at_medium=RSS&at_campaign=KARANGA |
|
Bet365 boss Denise Coates gets £300m pay package – a £170m cutBillionaire Denise Coates, founder of gambling firm Bet365, takes a £170m cut in pay and dividends. Read more at: https://www.bbc.co.uk/news/business-60612165?at_medium=RSS&at_campaign=KARANGA |
|
Ukraine energy giant tells world ‘don’t buy Russian oil’The boss of Ukraine’s largest energy firm, Naftogaz, says Russian sanctions should be stronger. Read more at: https://www.bbc.co.uk/news/business-60565784?at_medium=RSS&at_campaign=KARANGA |
|
Trade setup: Any slip below 16,400 to invite incremental weaknessFriday is likely to see the levels of 16565 and 16650 acting as resistance points. The supports come in at 16,450 and 16,400 levels. A bearish engulfing candle has appeared on the chart. Since this candle has emerged following a downtrend and near pattern support, it may mark a temporary reversal point for the markets. However, this will need confirmation going ahead from here. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/trade-setup-any-slip-below-16400-to-invite-incremental-weakness/articleshow/89974494.cms |
|
Oil hits almost decade high before Iran throttles the rallyBenchmark Brent rose to $119.84 a barrel, the highest since 2012, with additional support coming from data showing U.S. crude stockpiles had hit multi-year lows. By 1416 GMT, it had slipped back to $112.75 a barrel. Read more at: https://economictimes.indiatimes.com/markets/commodities/news/oil-jumps-brent-above-116/bbl-as-supply-issues-persist/articleshow/89958585.cms |
|
Market movers: UPL announces share buyback and traders rush to capitaliseUPL has joined the bandwagon of companies announcing share buyback to the tune of Rs 1,100 crore, at a price of Rs 845. The buyback price would be at a 23 per cent premium to Wednesday prices. Sensing the opportunity, traders on Thursday rushed to buy the stock wishing to capitalise on the offer. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/market-movers-upl-announces-share-buyback-and-traders-rush-to-capitalise/articleshow/89973353.cms |
|
: EV market facing tougher uphill from battery costs than vital mineral shortageEV battery costs, job growth in energy efficiency, and booming offshore wind are takeaways in Bloomberg NEF and Business Council for Sustainable Energy report. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7A1C-62ABC624BBD9%7D&siteid=rss&rss=1 |
|
Financial Crime: Former Fox News director charged with violating sanctions by working for banned Russian oligarchProsecutors say Jack Hanick set up a pro-Putin religious channel for Konstantin Malofeev, who was sanctioned for backing Kremlin-backed separatists in Ukraine. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-7A23-FC7FB79BFAC4%7D&siteid=rss&rss=1 |
|
: Letter from Kyiv: ‘This is what Putin doesn’t get: We are not Russians. We can stand for ourselves. And we have our own history.’‘I have something to say to the Russian people: You should fight against your own dictators. Freedom is not given; it’s taken.’ Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-79ED-53CE6DAF04B5%7D&siteid=rss&rss=1 |
