Despite efforts in recent years to transition away from Russian gas, many of Europe's economies are still heavily dependent on it. The IMF has released a report indicating that the loss of Russian gas supplies could cause economic contractions of up to 6 percent in some nations, including Czechia and the Slovak Republic. The IMF reports: Dependence on Russia for gas, and other energy sources, varies widely by country. How could a Russian natural gas cutoff weigh on Europe’s economies? #IMFBlog rounds up three new staff research papers examining this question: https://t.co/aZBFX6dWnj … [Read more...]
Happy Independence Day
In a 3 July 1776, Founding Father John Adams wrote a letter to his wife, Abigail: "I am apt to believe that it will be celebrated, by succeeding Generations, as the great anniversary Festival. It ought to be commemorated, as the Day of Deliverance by solemn Acts of Devotion to God Almighty. It ought to be solemnized with Pomp and Parade, with Shews, Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the other from this Time forward forever more. You will think me transported with Enthusiasm but I am not. -- I am well aware of the Toil and Blood and … [Read more...]
Happy Memorial Day!
Happy Easter!
India and China Quietly Eschew Sanctions, Buy Russia’s Oil
Despite international approbation of commerce with Russia, India and China have quietly been buying Russian oil. Bloomberg News reports: China’s oil refiners are discreetly purchasing cheap Russian crude as the nation’s supply continues to seep into the market. Unlike India’s state-run oil refiners, which have issued a number of tenders seeking to buy Russia’s flagship Urals crude among other grades, traders say China’s state processors are negotiating privately under the radar with sellers. The nation’s independent refiners are also quietly buying, according to traders who asked not to be … [Read more...]
Is there Any Oil Left? Saudi Aramco Says Market Is Tight
Saudi Arabia and the United Arab Emirates hold the bulk of the world's spare oil capacity. With prices for oil surging, Saudi Arabia's state run oil company, Saudi Aramco was asked if there was much oil to spare, and its answer was, essentially, "not much." Reuters reports: Global oil demand is growing healthily as economies recover from the pandemic and spare production capacity is declining, the CEO of Saudi Arabia's state oil company Aramco said on Sunday. Oil prices have surged to 14 year highs above $100 per barrel in recent weeks as Russia's invasion of Ukraine prompted fears of … [Read more...]
SUPPLY CHAIN SLAM: China’s COVID Outbreak Shuts Down Factories
Surging numbers of COVID-19 cases have forced Chinese leaders to lock down important manufacturing cities including Shenzhen and Changchun. The lockdowns could impact the production of many electronics, including iPhones. The Wall Street Journal reports: A number of manufacturers including Foxconn 2317 -1.46% Technology Group, a major assembler of Apple Inc.’s AAPL +2.82% iPhones, said they were halting operations in Shenzhen in compliance with the local government’s policy. The government placed the city into lockdown for at least a week and said everyone in the city would have to undergo … [Read more...]
Bipartisan Criticism Kills Biden’s Venezuelan Oil Gambit
Senators from both Republican and Democratic Parties have come out to criticize the Biden administration for its attempt to open up Venezuelan oil supplies to America while President Nicolás Maduro runs the country. Gideon Long and Michael Stott report for the Financial Times: The Biden administration saw the Ukraine crisis as an opportunity to re-engage with Nicolás Maduro’s authoritarian regime in Venezuela, hoping to secure alternative oil supplies and prise away a key Moscow ally. But after news leaked of a secret mission to Caracas by three top White House officials, sparking a … [Read more...]
THE JONES ACT: The Reason America Buys Russian Oil
Americans don't use Russian oil because it makes economic sense, they use it because bad policies have made American oil for American consumers make less sense. Chief among these bad policies is the Jones Act, which strangles the ability of American oil producers to get their product to consumers in the same country. At Cato Institute, Colin Grabow explains: With imports of Russian oil (as well as coal and natural gas) now banned, the country’s refineries must decide on alternative sources. The good news is that there are U.S. grades of crude oil well‐suited for refineries on the East and … [Read more...]
Microsoft on the Front Lines of Cyberwarfare
As Russian tanks rolled into Ukraine, so did its cyberwarfare. Anticipating Russia’s actions, Microsoft’s Threat Intelligence Center was already on high alert when it noticed a never-before-seen piece of malware called “Wiper” aimed at Ukraine’s government sites and financial institutions. Within hours Microsoft was able to roll out a patch to block the code which erases or “wipes” the data from computers. David Sanger, Julian Barnes, and Kate Conger of Boston.com write (abridged): Last Wednesday, a few hours before Russian tanks began rolling into Ukraine, alarms went off inside Microsoft’s … [Read more...]