Will Russia Take U.S. Oil Market Share Under The Biden Administration?

Deck
Gasoline prices have gone up every week since President Joe Biden took office
Russia is the world’s 4th largest carbon emitter, but unlike other major polluters, their government doesn’t have a plan to transition away from fossil fuels
If democrats can get fiscal stimulus through, it’ll give oil and production a big reflationary boost

Anna Carpenter
Tue, 02/09/2021 – 12:08

Authors
Phil Flynn

Publication Date

Image
Energy Report

 

The Phil Flynn Energy Report 

Russian Oil Rush

Oil prices are on a tear, with gasoline prices going up every week since President Joe Biden took office. Despite his vision of a green planet, the rest of the world isn’t slowing oil production. Under the Biden Administration, it’s less friendly to invest in U.S. oil and gas, so the world’s biggest polluters will likely begin to pick up oil production while the U.S. is left out. Among these polluters is Russia, who’s already a direct beneficiary of Biden’s green energy push. 

Bloomberg reports the following:

“U.S. President Joe Biden’s push to slash carbon emissions may inadvertently give a short-term boost to energy companies in one of the world’s biggest polluters. Investors are betting that Russian oil giants such as Lukoil PJSC, Rosneft PJSC, and Statnett PJSC will rally as they mop up market share from rivals in the U.S. and other countries seeking to switch to clean energy. 

An index of Russian energy stocks has returned 8% in dollar terms so far this year as crude prices rallied, compared with 2% for European oil and gas companies. 

‘Governments will likely limit global companies’ capacities to drill and extract resources,’ said Eduard Karin, who helps oversee $1 billion of assets at Alfa Capital Asset Management in Moscow. ‘The global majors are entering a new market, a new industry where there are a lot of unknowns, and the return on capital is unclear.’”

Bloomberg says that Russia is the world’s 4th largest carbon emitter, but unlike other major polluters, their government doesn’t have a plan to transition away from fossil fuels. Instead, its state-owned energy companies benefit from some of the world’s lowest production costs and tax breaks, making them well-placed to gain in the short-term.

Of course, we predicted that this would happen, and we’re predicting more pain for U.S. consumers as we continue to see the impact of President Biden’s green dreams. Bloomberg states that it’s only a short-term boost for Russia, but if Biden’s policies aren’t changed, we at The Energy Report believe the loss of U.S. oil market share will be permanent. That means that we drivers will up the tab in a big way as we start to consume more Russian oil.

Take a look at gas prices. Our friends at Gas Buddy report that, “For the fifth consecutive week, the national average has increased, rising 3.7 cents per gallon over the last week to $2.45 today according to GasBuddy data compiled from more than 11 million individual price reports covering over 150,000 gas stations across the country. The national average price of diesel has risen 3.8 cents in the last week and stands at $2.68 per gallon.” 

While the price increase can’t fully be blamed on Biden, the reality is that it seems he’s done nothing to bring those prices down. By killing pipelines and drilling pauses and reviews, he’s already installing an invisible tax on all Americans, a tax that’ll be paid in large part to foreign oil producers who will prosper off the backs of working Americans. 

Oil’s also getting a nudge from the stimulus push by the Democrats. If they can get it through, it’ll give oil and production a big reflationary boost. Stay tuned.

Don’t miss out on my wildly popular trade levels on all major markets, as well as special subscriber-only updates. Call me at 888-264-5665 or email me at pflynn@pricegroup.com.

Section
Market Analysis

Tags
Energy
Crude
Oil
Energy
Tropical storms
Hurricane
WTI crude oil
Hurricane season
natural gas
Brent crude
Brent crude futures
WTI futures

Site
FuturesMag

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.