Energy & Commodities

Oil Prices Crash By 11% As UAE Calls On OPEC To Open The Taps

Posted by Julianne Geiger, oilprice.com

on Wednesday, 9 March 2022 11:59

  • UAE Ambassador to Washington says his country favours production increases and will encourage OPEC to consider higher production levels.
  • The UAE marks the first OPEC+ member to call for more production.
  • Brent crude has dropped more than $15 per barrel as traders have begun to take profits.

In a complete oil industry turnaround, The UAE’s ambassador to Washington has said in a statement to the press that they “favour production increases and will be encouraging Opec to consider higher production levels.”

Yousef al-Otaiba’s statement, carried by the FT, comes as both the UAE and Saudi Arabia—two of the very few, if not the only, OPEC members that are believed to have spare capacity—have ducked calls from President Joe Biden to discuss the crisis that is brewing the oil markets after Russia invaded Ukraine, sending oil prices sky high.

OPEC managed to lift its production by 560,000 bpd in February, according to a new S&P Platts survey, but President Biden has repeatedly asked OPEC to increase its production to ease prices for the American consumer.

While the UAE and Saudi Arabia are the most likely candidates for having spare capacity that could be turned on on short notice, they are already producing to quota. Producing more would be a violation of the OPEC agreement—and more importantly, the OPEC+ agreement that it made with other countries, including Russia…read more.

Alberta temporarily drops 13-cent-a-litre gas tax April 1 to provide some relief at the pumps

Posted by Ashley Joannou, Lisa Johnson, edmontonjournal.com

on Monday, 7 March 2022 15:31

The Alberta government is temporarily ending the collection of its 13-cent-a-litre gas tax as of April 1 in an attempt to help Albertans dealing with increasing fuel costs.

Premier Jason Kenney announced Monday that the fuel tax, which covers both gasoline and diesel, will be paused when the price of West Texas Intermediate (WTI) oil is more US$90/barrel. When the price of WTI is less than $80/barrel the fuel tax will be put back in place.

WTI was hovering above $118/barrel Monday.

Kenney also announced that almost all families will also receive a $150 rebate applied directly to their electricity bill. That rebate will come “as soon as possible” Kenney said, after the government passes the required legislation.

The average price of gas in Alberta sat at $1.56.7/litre Monday morning, up nearly 44 cents from last year’s average…read more.

A majority of Vancouver residents ready to see COVID restrictions lifted by spring break: poll

Posted by Lindsay William-Ross, vancouverisawesome.com

on Monday, 7 March 2022 13:27

Should we keep masking up and showing vaccine passports in B.C. as we head into mid-March and spring break?

Vancouver residents seem ready to ditch the province’s remaining pandemic-related restrictions, according to a recent V.I.A. poll, which found that 44.55% of local respondents would like to see all remaining COVID-19 restrictions in British Columbia lifted before spring break.

A further 25.99% voted to indicate they are keen to see some restrictions removed by then.

In mid-February, B.C. eased multiple COVID restrictions across the province, including ending capacity limits at restaurants and event venues, with promises of more removals to come, should the data indicate it’s safe to do so…read more.

Falcon slams NDP for high gasoline tax, housing prices

Posted by Nelson bennett, biv.com

on Monday, 7 March 2022 12:30

Kevin Falcon, new leader of the BC Liberal Party, laid into BC NDP government policies today – from gasoline taxes to housing initiatives – that he said are making it hard for ordinary British Columbians to get by.

B.C., especially Vancouver, has been seeing record-breaking gasoline prices in recent days, with gas prices in Vancouver inching towards $2 per litre.

While there are geopolitical reasons for soaring oil prices that are driving up gasoline prices everywhere, including the war in Ukraine, they are particularly painful in Vancouver due to a suite of fuel taxes, Falcon said.

Asked if he thought a gasoline price cap similar to what New Brunswick has is the answer to high gas prices, Falcon said it wasn’t.

“No — that kind of interference in the marketplace, frankly it won’t work,” Falcon said.

He said the government had a tool for lowering taxes for British Columbians as carbon taxes on gasoline rise – revenue neutrality – but pointed out that the NDP government scrapped the revenue neutrality requirement of B.C.’s carbon tax…read more.

Oil Prices Break $130 As EU And U.S. Allies Consider Ban On Russian Crude

Posted by Michael Kern, oilprice.com

on Monday, 7 March 2022 12:06

The United States has confirmed that it is in talks with European allies to potentially sanction Russian crude oil in response to Moscow’s ongoing aggression in Ukraine, sending oil prices briefly above $130.

US Secretary of State Antony Blinken noted on Sunday during the NBC talk show Meet the Press on Sunday, “We are now in very active discussions with our European partners about banning the import of Russian oil to our countries, while of course at the same time maintaining a steady global supply of oil.”

The latest considerations follow a stream of sanctions that have already had a significant impact on the Russian economy but have not yet been able to halt Putin’s advance into Ukraine.

European Commission President Ursula von Der Leyen has yet not fully supported the idea as of yet, though she has expressed that one of their primary goals in the sanctions that have been levied thus far is to cut Putin’s funding streams…read more.