Personal Finance Topics / Macroeconomic Trends and Risks
No. of Recommendations: 3
U.S. crude oil tops $80 per barrel as escalating Iran war disrupts global fuel supplies
The price of West Texas Intermediate oil was last up 8.92%, or $6.66, at $81.32 per barrel by 2:19 p.m. ET. Global benchmark Brent rose 5.21%, or $4.24, to $85.64 per barrel. Oil prices have surged about 20% this week. https://www.cnbc.com/2026/03/05/crude-oil-prices-t...Even though the US not only controls it's own sizeable production, controls most Canadian exports, which have no exit from Canada, other than pipelines through the US, and controls all of Venezuela's production, it would be communistical to not require USians to compete for oil at the global price.
US regime policy: "energy domination" = controlling access, and squeezing the buyers to the max.
Steve
No. of Recommendations: 5
Canadian exports, which have no exit from Canada,
Canada ships oil via pipeline to its west coast and then onto crude carriers. Canada can ship to Asia, Europe, or wherever once loaded onto a ship--depending on the buyer.
No. of Recommendations: 1
Even though the US not only controls it's own sizeable production, controls most Canadian exports, which have no exit from Canada, other than pipelines through the US, and controls all of Venezuela's production, it would be communistical to not require USians to compete for oil at the global price.It's
LOOP, baby. The Law of one Price:
https://en.wikipedia.org/wiki/Law_of_one_priceNot quite as fun an acronym as NAIRU, but there you go.
No. of Recommendations: 2
Canada ships oil via pipeline to its west coast and then onto crude carriers
We have discussed this point before. That pipe can only carry a fraction of Canada's output. The majority flows through pipelines through the US, which means God on Earth Trump can attenuate, or halt, the flow, and Canada can't do anything about it.
Trump the Magnificent also decreed he controls access to every drop of Venezuelan oil, and the US has first dibs on all of it.
Being Generalissimo is good.
Steve
No. of Recommendations: 2
It's LOOP, baby. The Law of one Price:You threw me for a moment, with that one. To me, "LOOP" is the "Louisiana Offshore Oil Port". The pump seal company I worked for was hip deep in that project, when it was built in the late 70s.
The Louisiana Offshore Oil Port (LOOP) is a deepwater port in the Gulf of Mexico 29 kilometers (18 nautical miles)[1] off the coast of Louisiana near the town of Port Fourchon. LOOP provides tanker offloading and temporary storage services for crude oil transported on some of the largest tankers in the world. Most tankers offloading at LOOP are too large for U.S. inland ports. LOOP handles 13 percent of the nation's foreign oil, about 1.2 million barrels (190,000 m3) a day, and connects by pipeline to 50 percent of the U.S. refining capability. https://en.wikipedia.org/wiki/Louisiana_Offshore_O...I hope the world has a lot of KY. Trump the Magnificent is going to give it to them hard.
Steve...realizes he will be "collateral damage", and TPTB don't care
No. of Recommendations: 2
Trump can attenuate, or halt, the flow, and Canada can't do anything about it.
Not quite. A lot of that crude goes to US refineries for gas and other petro products for the US market. Spankee can NOT (rationally, anyway) interfere with that flow without substantively damaging the US economy and hurting a LOT of US farmers. Guess how they vote? Or, how they WILL vote if Spankee screws them AGAIN? Dems control the govt? Possible.
No. of Recommendations: 3
Spankee can NOT (rationally, anyway) interfere with that flow without substantively damaging the US economy
He controls it. That is the point. And, with sole control of Venezuelan heavy, which is a good substitute for Canadian heavy, more Canadian can be deemed redundant.
"Control" in the mind of Pirate King Trump, is what the rest of us would call "extortion".
Steve
No. of Recommendations: 1
Venezuelan heavy, which is a good substitute for Canadian heavy
Nope. Canada ships its oil to those northern refineries via pipeline. There are ZERO pipelines going to those refineries from the south because they were not needed.
Spankee can SAY whatever he wants out of any of his orifices--but refineries need the right type of crude via pipeline. So, WHEN will those pipelines be installed by Spankee? NEVER !!
No. of Recommendations: 3
Nope. Canada ships its oil to those northern refineries via pipeline. There are ZERO pipelines going to those refineries from the south because they were not needed.That is a negative. Significant volume of Canadian heavy goes to the US Gulf Coast, PADD 3, for refining.
While this chart, from 2024, shows significant Mexican crude going to PADD 3, Trump the God did not exempt Mexican crude from his spite tariffs, like he did Canadian. So much of the Mexican is now going elsewhere.
U.S. Refineries and Canadian Crude Oilhttps://www.instituteforenergyresearch.org/interna...One of the large PADD 3 buyers of Canadian, Valero, is now buying Venezuelan, thanks to the intervention of Generalissimo Trump.
Exclusive-US refiner Valero to import up to 6.5 million barrels of Venezuelan crude in March, sources sayhttps://finance.yahoo.com/news/exclusive-us-refine...The Venezuelan colony does not, currently, have enough production to completely replace Canadian, but I expect Venezuelan to replace virtually all Canadian refined in PADD 3.
After all, why would big oil have paid that $1B bribe, if not to ensure adequate crude supply, and soaring profits, while the rest of the world deals with "shortage"?
Steve
No. of Recommendations: 2
Significant volume of Canadian heavy goes to the US Gulf Coast, PADD 3, for refining.
"Roughly 90% of Canada’s total oil exports go to the U.S., with about 16% of that specifically destined for the Gulf Coast."
Nice try, but not even close.
"Oil pipelines and refined product systems from the U.S. Gulf Coast to the North/Midwest include the Magellan Pipeline System (reaching Minnesota), the Colonial Pipeline (major fuel carrier to the East Coast), and the Keystone Pipeline System (transporting Canadian/Midwest crude to the Gulf)."
Magellan is only option--all others either go EAST or SOUTH (not NORTH).
"Magellan boasts the longest refined products pipeline system in the country and accesses nearly 50% of U.S. refining capacity"
Magellan's own web site contradicts your claims. They move REFINED products, not crude. So they are unable to supply a refinery unless they REPLACE REFINED OIL PRODUCTS WITH CRUDE IN THEIR PIPELINE.
No. of Recommendations: 1
"Roughly 90% of Canada’s total oil exports go to the U.S., with about 16% of that specifically destined for the Gulf Coast."Pretty close. The net sifter says about 18.6%.
How much oil does Canada export to the US? About 4.3Mbod, in 2024.
So, 18.6% of Canadian exports to the US, which go to the Gulf Coast, amounts to about 800,000bpd.
How much oil does Venezuela export? About 800,000bpd.
How much oil does Mexico export to the US? 733,000bpd, in 2023.
So, by seizing all Venezuelan exports, at current levels, Generalissimo Trump the Magnificent can replace virtually all Canadian, or Mexican, crude refined in the Gulf. Venezuelan production could be doubled, and find a ready market in the US Gulf refineries, displacing more Mexican and Canadian.
And flow in a pipeline can be reversed. The Seaway line was reversed some years ago.
Pipeline Flip Turns U.S. Oil World 'Upside Down'https://www.npr.org/2012/05/18/152922360/pipeline-...What was the question?
Steve
No. of Recommendations: 1
And flow in a pipeline can be reversed.
If you are sending the same/comparable oil in the reverse direction.
Huge difference between sending crude vs refined petroleum products in opposite directions via the same pipeline.
