Oil soars as Trump dumps Iran nuclear deal, dollar dips

[DonViejo]

Source: Reuters



MAY 8, 2018 / 9:24 PM / UPDATED 23 MINUTES AGO

Kit Rees

LONDON (Reuters) - Crude oil prices hit 3-1/2-year highs on Wednesday after President Donald Trump pulled the United States out of an international nuclear deal with Iran, while the dollar touched a new high for the year and world stocks held steady.

Trump’s move sparked fears of increased tension in the Middle East and uncertainty over global oil supplies. [O/R]

Demand for safe-haven assets remained muted as the immediate market impact was seen as specific to oil supply, but investors remained mindful of the knock-on effects on inflation.

Gold prices XAU= retreated and bond yields rose. The U.S. 10-year Treasury US10YT=RR once again breached the psychologically significant 3-percent level and hit a two-week high of 3.0140 percent, supported by expectations of higher interest rates.





Read more: https://www.reuters.com/article/us-global-markets/oil-soars-dollar-roars-as-trump-dumps-iran-nuclear-deal-idUSKBN1IA064

[world wide wally]

1. Putin will probably send Trump a teddy bear to cherish for life

[Sophia4]

24. Right!

[Beausoleil]

51. A Putey bear! n/t

[politicaljunkie41910]

60. I'm sure all Trump's friends had already bought their Oil Stocks weeks ago because they always know

what's going to happen first. He makes sure of that.

[beachbum bob]

2. $3/gal nationwide before July1st, maybe as soon as end of next week

[bluestarone]

4. YEP AND

CLIMBING!!!!!!!!!!!!!! Russia pays RUMP and then RUMP pays Russia!! Nice game they have going huh??

[watoos]

5. It's been $3 a gallon for a couple weeks

here in Pa., but then we have the highest state gasoline taxes in the nation.

[beachbum bob]

6. I look at nationwide average, its still below $2.75 I think

[BumRushDaShow]

8. Yup and here in the Philly area

has also been > $3 for the past couple weeks too - well before this announcement. I ran out last week and topped the car off (luckily I don't have to drive much). And the city has that 8% sales tax so adds the extra 2% onto the state's base sales tax.

[IronLionZion]

15. Do you ever go to New Jersey to buy gas?

It's often much cheaper there.

I live in DC and go to Maryland or Virginia to buy gas (and groceries) and save like 20 cents a gallon.

[BumRushDaShow]

27. Here's the problem with that

(which they know)

The bridge toll on the Delaware River Port Authority bridges is $5 (and you have to cross some bridge to get to NJ from PA). So by the time I got over there, the cost differential is gone. And just recently, Jersey (for the first time in decades) raised their gasoline tax to 23 cents/gal (they used to have the 2nd lowest tax in the country), so it's now worse (they are now running about ~25 cents/gal less than us but it is meaningless).

So for example, right now, a couple stations right across the bridge in Camden, are ~$2.73, and what I paid last week at the cheapest I could find here was $2.97 (difference of 24 cents), and if I fill up with 15 gallons, that's a saving of about $3.60. But that "savings" was eaten by the $5 toll and I lose $1.40.

So unless I am a regular commuter (one of my BILs used to commute back and forth there every day), it's not worth it.

And I used to drive down to the D.C. metro area a lot and the gas was always cheaper down there too. I would obviously have to fill up before coming home from down there in any case, but at least it was at a bit of a savings. But then once more, the tolls going down there and back totaled something like $16 I think, and more than ate that up too!

Edit to add - for the heck of it, I calculated another way - using the Tacony-Palmyra Bridge (which is not part of the Port Authority but has its own toll, where years ago it was called "the double-nickel bridge" ). And going over that with an EZ-pass means a toll of $3 and the gas on the other side of the bridge is averaging $2.79, with a differential of 18 cents. So for 15 gallons, that would be a savings of $2.70, but then with the $3 toll, I would only save 30 cents. If I didn't have an EZ-pass, the toll would have been $4 so I would have had a loss of $1.30.

Jersey got it all figured out.

[3Hotdogs]

50. Bridges in New Hope, Frenchtown, Stockton and Milton are free.

I don't know where you live but it may pay to take the drive.

[BumRushDaShow]

52. Those places are 30 - 40 miles from where I live

and I would probably use up a couple gallons of gas (round trip) to get there, which would come out to the same as a toll. This would include even the Morrisville - Trenton toll bridge along Rt. 1 (which is 60 cents for EZ-pass). And similarly, Wilmington, DE is about the same distance (and is running around the same prices as Jersey), so still not really cost effective.

People here in Philly will go across the bridge or down to Delaware to get (sneak) alcohol (we still have state stores here) for a big discount, but for gas, both NJ & DE have it set just so - especially with the stations right on the other side of the bridge/state line - to not make it worth it.

[brucefan]

53. I've worked in Jersey

For 26 years,can’t remember the last time I bought gas in Philly

[Wounded Bear]

12. Gee, I thought we here in WA held that honor...

It's been floating above $3 for a while, even at the discount stations.

[calimary]

25. I thought it was California.

[CountAllVotes]

42. It is over $4.00 here

n/t !!

[workinclasszero]

22. So much winning!

MAGA baby!

[Staph]

64. Our gas here in western West Virginia

went from $2.62 on Tuesday to $2.89 today.

Thanks, Obama!

[democratisphere]

3. Putin must be doing the Russian gopak dance around the Kremlin.

[BumRushDaShow]

7. Brent crude hit $77/bbl as a high so far

and is still trading around that - https://www.cnbc.com/quotes/?symbol=@LCO.1

[quartz007]

32. Oil prices will soon exceed 2011-2014 period!

https://www.statista.com/statistics/204740/retail-price-of-gasoline-in-the-united-states-since-1990/

Looks to me prices depend on supply and demand at any particular time.

What really irritates me is gas prices jump up within hours when crude oil prices go up. But when crude oil prices drop, it is 7-10 days before gas starts going down a few pennies at a time. Looks like big oil is always ripping us off as much as possible.

[BumRushDaShow]

36. Yes - I HATE HATE HATE when this happens

Quick to go up and slow to drop.

BUT, and this is a big "but", what might happen is that the U.S. oil producers might try to cash in and will start pumping big time again and might possibly flood the market (at least temporarily). That happened before. It could be touted as a "job producer" for all those folks who got laid off in the industry when the market was completely swamped between us and Saudi pumping it out.

[Botany]

9. How much will Putin/Russian oil companies/oil oligarchs make after this bone head move?

$3.50 a gallon gas here we come.

[Wounded Bear]

13. If they drive oil prices high enough...

they think we'll lift the Russian sanctions against drilling in the Arctic.

[Botany]

14. From the movie Casino

Nicky Santoro: "Always the dollars. Always the fuckin' dollars."

Sadly you might be right ..... Hey we got to bring down the cost of gas and if we open
the oil and gas fields in the arctic then the supply will go up and the cost of gas will go
down.

[Wednesdays]

16. $3.50!? Hell, it'll be $3.50 by Memorial Day

The peak will be five bucks, or more.

[DFW]

55. Where I live, it hasn't been as low as $5 in fifteen years

It depends on your perspective.

[not fooled]

34. vlad, the kook brothers, multinational oil cos.

all the beneficiaries of donnie's largesse.

blue collar dump voters: enjoy your $5+/gal gas and having your sons and daughters serve as cannon fodder in the upcoming wars.

[forgotmylogin]

46. Trump doesn't care - he doesn't buy gas.

Does he even know how to drive?

His buddies sure make a lot of money on it tho.

[marble falls]

10. But but but US oil companies hate high oil prices.....

high gas prices will work against cheetolini as his blue collar voters are hit hard by high pump prices.

[dembotoz]

11. wonder when ford will revisit their decision to dump econonoboxes again

gas goes up
the pick up and suv look more expensive

[Achilleaze]

17. Thanks a diaperload, republicans

repubes screwing over America

[heaven05]

18. 5$ a gallon, soon???

fuck trump. And I damn sure won't be able to pay for it. Another thing, with trump increasing the deb/expenditure load on americans, I just found out how expensive putting cancer into remission can be. Even with Medicare and a good insurance which I pay through the nose for, I just got a personal bill for chemo services for $4270.00. Can't wait for the rest to dribble in. Talk about 'sticker shock'!.

[bluestarone]

21. YEA but that will be right after

MIDTERMS!!!! Then RUMP and PUTIN will really nail us Americans!!!!!!!!!!!!

[quartz007]

33. Feel for ya! Hope you are getting better!!

Thank goodness my insurance has a out of pocket maximum of $2800 in any calendar year.

[n2doc]

19. Mission Accomplished

Assholes

[Bengus81]

20. Crude was 59.20 in early Feb,might hit 75.00 today............

So all the Trumpanzies can use their 3.00 per week tax cut to pay for gas and still come up 7.00 short each week.

Fuel here was 2.15 the day that fat ass took office,now about 2.70 and afraid to look this morning.

[world wide wally]

30. Wasn't $75.00 Russia's target price to show a profit?

Mission accomplished.

[quartz007]

35. $75 should bring back fracking?

Fracking is profitable at $75 as well. May be that is what Rump is trying to accomplish. More fracking.

[OMGWTF]

44. Gas in Seattle is Already Over $3.00 a Gallon

[lark]

23. Rosneft and Putin are celebraing!

He's just done lots to help their economy and hurt ours, their investment is paying off big time.

[Wounded Bear]

26. Yep, this looks like a ploy to get around sanctions...

and start buying Russian oil.

[MosheFeingold]

37. The US does not import Russian oil

The US is now a net exporter of oil. As prices rise, more expensive fields (e.g., the Bakken) become profitable again, so we'd export even more.

Long way of saying, as a "net" to the US economy higher oil prices are OK, in that we produce our own oil and more.

Doesn't make going to the gas station fun, however.

And the money goes to asshole Texans.

[BobTheSubgenius]

28. So....Western economy not crumbling just yet.

Must mean that treaties limiting nuclear proliferation are definitely for cucks, then. Amirite?

[forgotmylogin]

29. The righties will cheer this as winning somehow.

Historically it seems that nothing riles people up as much as having to pay $35-40+ to fill their tank.

[Plucketeer]

31. Make Americans Groan Again nt

[IronLionZion]

38. The dollar is higher, the opposite of dip

headline is incorrect

[montanacowboy]

39. $3.59 in Seattle area

It will hit $4 by summer holidays

Hey Humpers! How do you like it?

[C Moon]

40. Suddenly, the Bush family is happier.

[LakeArenal]

41. So has this been all for dissing Obama and paying off oil companies?

[OMGWTF]

43. EVERYTHING *resident Traitor Tot Touches Turns to Sh!t

[dalton99a]

45. "Please beat us more!"

[mtngirl47]

47. This will hurt my tourist business for the summer...HOWEVER...

This will help with the Blue Wave in November!

[AllyCat]

48. What a great deal guy he is, no?

Deal breaker, that's for sure. Breaking deals with other government and deals he made while campaigning about prices of commodities.

[packman]

49. Gee- Oil interests behind the Iran thing?

Why doesn't that surprise me?

[DFW]

54. Dollar "dips?"

Must be the Fox Noise version. The Euro is below €1.19 for the first time in a while. "Dollar soars, too" would be closer to the truth--which makes perfect sense, since with oil headed north, a few hundred billion dollars will be necessary to pay for the jump in the oil price, which is traded mostly in dollars world-wide. For those of us who are paid in dollars but taxed in euros, it is actually good news, although no one expects it to last.

[SCantiGOP]

56. I think the OP was correct first thing this morning

But dollar is up now. Very unusual for oil prices and the dollar’s value to both go up together.

[DFW]

59. The dollar has been on a slow but steady spiral up for a week or more

As Trump's handling of our economy is the equivalent of shooting blindfolded and hoping to hit a bullseye at 50 yards, the only logical reason I can think of for a dollar surge is that some large consumers of oil in non-dollar-denominated countries were caught flatfooted with the rise in oil prices, and need to cover an unforeseen need to buy a few hundred billion dollars on the currency markets.

[steve2470]

57. hey my friend

I hope you and MrsDFW are doing well!

[DFW]

58. Hey there back!

Mrs. DFW is going through a bit of stress at the moment. She still feels OK, but needed some nasty polyps removed (one of her mom's two bouts with cancer was intestinal, and my wife would rather not go through it again, already having beaten cancer twice). We are (again) waiting for the biopsies.

Her mom is in bad shape, too, so she is driving up there every two weeks or so (left again this morning, less than a week after getting out of the hospital), which makes me nervous as hell. We have to go down to the wedding of one of her cousins in Bavaria on Friday, so I hope she can set her mom up for the weekend and get her ass back down to Düsseldorf tomorrow night so we can travel together.

I was in Paris all day today, and have to run over to Holland tomorrow, There is no rest for the weary, as well you know! But Mrs. DFW is one strong woman, as you now know from personal experience, and unless some Romanian truck driver falls asleep at the wheel and runs her over a cliff, I'm sure she'll be fine, and back in time for us to travel together Friday. Never a dull moment, right?

[steve2470]

61. best wishes to MrsDFW and you

She is a strong woman, and a good cook, as we both know! I'll always treasure my visit with you two

[DFW]

62. Yes, she is a genius in the kitchen on top of the rest.

I don't know if she ever told you, but she grew up in the flat farmland of the northwest, near the border with Holland. A country girl, through and through. She also learned to think for herself, and that there was nothing wrong with doing what you wanted to do. She was approached several times about being a model, and she told them to get lost because she wanted to be a social worker, and that's what she planned to do (and did). Not your typical response to THAT kind of offer, I'll bet.

[steve2470]

65. yes you told me :)

You married a real gem, as you know.

[DFW]

66. I do know indeed

I've never completely figured out why she chose to stay with me. She could have had any guy she wanted, and yet I won the lottery. Not that I'm complaining, you understand. You've seen me sing her praises on this board often enough, and if some think I'm blowing her up to be something far more special than she really is, well, I guess I can't blame them for their skepticism. But you know the real story (so does Peggy). Spend a few hours in her presence, as you did, and you know it's all for real. Just like what happened to me when we first met.

Forty-four years ago. How scary is that?

[KY_EnviroGuy]

63. Some perspectives on oil and the dollar...

Oil and the dollar are doing something they have only done 11 times in the past 35 years
By Mark DeCambre
Published: May 9, 2018 4:04 p.m. ET

Link: https://www.marketwatch.com/story/oil-and-the-dollar-are-doing-something-they-have-only-done-11-times-in-the-past-35-years-2018-05-09

....crude has rallied as production curbs instituted by the Organization of the Petroleum Exporting Countries and other major oil producers appears to have achieved the desired goal of absorbing a glut of crude that helped crush prices of both international benchmark Brent oil trading on the ICE exchanged and U.S. listed WTI back in 2014

Anticipation of supply disruptions likely to ensue following President Donald Trump’s announcement on Tuesday that the U.S. is exiting the multilateral Iran nuclear pact also played a part in lifting crude futures.

The dollar index, after slumping nearly 10% in 2017 and starting off 2018 with further weakness, has been on the rebound, hitting a string of four-month highs. In part, that’s due to expectations the Federal Reserve is unflinchingly on track to deliver at least two, if not three, more rate increases in 2018. Higher rates can make the buck more attractive to investors looking to park money. The dollar gauge remains off 6.5% over the past 12 months, to be sure.

Always more complex than what meets the casual eye.......

[Wednesdays]

67. You make a great presentation

The next task is enlightening the other 300 million Americans.
Best of luck to you.