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January 17th - On January 16th local time, the United States is accelerating the expansion of Chevrons oil production license in Venezuela. U.S. Energy Secretary Chris Wright stated that the U.S. is completing the relevant authorization "as quickly as possible." Wright said that under the proposed new licensing arrangement, Chevron will be allowed to pay the Venezuelan government in cash, instead of paying with crude oil in kind. This adjustment will allow Chevron to sell all of its crude oil production in Venezuela. Analysts point out that expanding the license will significantly improve Chevrons commercial flexibility in Venezuela and also reflects the latest policy direction of the U.S. on Venezuelan energy issues.On January 17th, Venezuelan Acting President Delcy Rodriguez announced at a meeting of the National Productive Economy Council on the 16th that Venezuela had signed a commercial contract for liquefied petroleum gas (LPG), marking the official start of the countrys export of this energy resource. Rodriguez pointed out that this achievement is directly related to the efforts made by Venezuelas national oil and gas industry to increase production levels.On January 17th, local time, Nicolás Maduro Guerra, son of Nicolás Maduro and a Venezuelan lawmaker, stated at a conference of Venezuelan legal professionals on the 16th that Venezuela should establish diplomatic relations with the United States and set up an embassy. In his speech, Maduro Guerra stated that Venezuela must maintain relations with all countries in the world. "I believe we should establish relations with the United States and set up an embassy; this is our right to self-determination." He also stated that Venezuela can maintain relations with countries with opposing stances, but this should be handled within a political framework. He added, "Venezuela should become a peaceful country and conduct business relations with the whole world."On January 17, Venezuelan Acting President Delcy Rodríguez announced the appointment of Miguel Pérez Pierrera as Minister of Information and Communications of the Peoples Government, Aníbal Coronado as Minister of Transport of the Peoples Government, and Freddie Níñez as Minister of Information and Communications of the Peoples Government.Federal Reserve Vice Chairman Jefferson: Regarding labor supply, immigration policy has slowed overall labor growth.

Oil costs increase as supply restrictions trump economic worries

Charlie Brooks

Jul 05, 2022 11:12


Oil prices climbed on Monday as supply worries spurred by a decrease in OPEC production, unrest in Libya, and sanctions against Russia trumped fears of a worldwide recession that would diminish demand.


In June, Euro zone inflation hit an all-time high, boosting the case for rapid rate rises by the European Central Bank, while consumer sentiment in the United States reached an all-time low.


Brent oil rose $2.26, or 2%, to $113.89 a barrel as of 12:47 p.m. ET (1648 GMT), after shedding more than $1 in early trading. The price of U.S. West Texas Intermediate (WTI) crude rose $2.20, or 2%, to $110.63 despite the lack of trading activity over the Fourth of July holiday.


According to a Reuters survey, the Organization of the Petroleum Exporting Countries (OPEC) failed to meet its June goal of increasing production.


Thursday, authorities in OPEC member Libya declared force majeure at the Es Sidr and Ras Lanuf ports and the El Feel oilfield, claiming a reduction of 865,000 barrels per day in oil output (bpd).


Meanwhile, more than two weeks of unrest have caused Ecuador to lose almost 2 million barrels of production, according to Petroecuador, the country's state-owned oil company.


This week, a strike in Norway may restrict supply from the biggest oil producer in Western Europe and reduce overall petroleum production by 8 percent.


"This background of rising supply interruptions clashes with a probable shortage of spare production capacity among Middle Eastern oil producers," said Stephen Brennock of oil trader PVM, referring to the producers' limited ability to pump more oil.


And prices will climb if new oil production does not reach the market shortly.


On Monday, British Prime Minister Boris Johnson asked OPEC+ to raise oil output to tackle the growing cost of living.


As a consequence of Russia's invasion of Ukraine, supply concerns have sent Brent oil prices close to 2008's record high of $147 a barrel.


As a consequence of restrictions on Russian oil and limited gas supplies, surging energy prices have driven inflation in certain countries to multi-decade highs and stoked fears of a recession.


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