Tag: oil

New Jersey Governor Bans “Illegal Russian Fuel” Inbound To Ports

New Jersey Democratic Governor Mikie Sherrill warned port and terminal operators in the state against “purchasing or unloading the illegal Russian fuel currently bound for the east coast of the United States.”

Sherrill’s move threatens to complicate President Trump’s efforts to bring Russian diesel into US markets to ease high industrial fuel prices amid a severe global refining squeeze fueled by Ukrainian drone attacks on Russian refineries and disruptions in the Strait of Hormuz.

In a Monday letter, Sherrill urged operators to turn away tankers carrying Russian diesel and said the state would use its legal and regulatory powers to prevent the shipments from entering through New Jersey.

Sherrill said, “Russia has since dispatched multiple diesel oil tankers to the United States, including at least one that may be headed for the New Jersey coast.”

“The Russian Oil Act does not grant the President or Treasury Department blanket authority to waive these sanctions through licenses,” the governor added.

She concluded, “Any effort to profit from the illegal trade in Russian fuel will be met with harsh penalties.”

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Useless Los Angeles Mayor Karen Bass Bans New Oil and Gas Drilling Throughout the City Because of Racism

Los Angeles Mayor Karen Bass has just announced that she has banned all new oil and gas drilling throughout the city and then went on to explain that this was a problem that was being driven by racism.

This is especially ironic, given the fact that so many Democrats have been campaigning on gas prices in this midterm election cycle. Do they think this drilling ban will help lower prices?

Bass is not a serious mayor. She’s an absolute joke, and this is another reminder.

From the Center Sqaure, via Yahoo News:

Los Angeles Mayor Karen Bass has signed an ordinance prohibiting new oil and gas drilling throughout the city and establishing a 20-year timetable to phase out existing wells.

Under the new ordinance, current drilling sites are designated as “nonconforming uses” and must cease operations within two decades, unless an earlier deadline applies. The ordinance restricts the expansion and redevelopment of existing operations while establishing limited exceptions for work strictly necessary to address public health, safety or environmental threats.

Bass, who is running for reelection on Tuesday against Los Angeles City Council member and fellow Democrat Nithya Raman, framed the legislation as a long-overdue victory for environmental justice in frontline neighborhoods that have historically borne the brunt of urban drilling…

“For too long, communities throughout Los Angeles have lived with the impacts of oil and gas drilling in their neighborhoods, leading to significant health conditions,” Bass said in a press release on Thursday, the day she signed the ban. “Signing this ordinance is another important step toward phasing out oil and gas drilling in Los Angeles once and for all.”

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Third Russian Refinery Attacked By Ukraine In 3 Days

The overnight hours into early Sunday morning hours saw yet a third Russian refinery attacked by long-range Ukrainian drones since Ukraine abandoned a short-lived halt on energy site attacks.

Russia’s Kstovo oil refinery is ablaze, becoming the third refinery hit in just three days. What’s known as the “Lukoil-Nizhegorodnefteorgsintez” oil refinery and the adjacent Novogorkovskaya combined heat and power plant in the city of Kstovo were impacted.

The complex is Russia’s fourth-largest refinery and its second-largest gasoline producer. Mulitple large fires reupted as a result of the strikes, across the industrial site.

“Residents in Kstovo began circulating footage of major blazes lighting up the skyline around 4:00 a.m. local time, reporting repeated loud detonations and low-flying drone engine sounds over the municipal industrial zone,” regional media reports.

Many inbound UAVs were observed penetrating the region’s air defenses, and images of dramatic scenes of large fires at the site quickly thereafter began ciculating.

Ukrainian media is acknwoledging and detailing the assault. Kyiv Post writes, “The installation manufactures high-octane automotive gasoline, diesel fuel, jet propulsion kerosene, bitumen, and specialized petroleum fractions utilized directly by Russian military logistics and heavy mechanized equipment.”

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Ukraine Shatters Strike Pause With Major Drone Attack On Russian Oil Refinery, Defying Trump

Russia’s sprawling Novokuibyshevsk Oil Refinery in the Samara region is on fire on Friday, after suffering what appear to be multiple and widespread hits of a Ukrainian drone attack wave, with several pillars of smoke rising high above the complex, and seen for miles.

Curiously, news of the fresh attack emerged just hours after the Wall Street Journal reported the Zelensky government had paused refinery strikes under pressure from the Trump administration.

WSJ’s reporting has been updated Friday morning in confirmation that “Ukraine struck an oil refinery in Russia’s Samara region early on Friday, ending a two-week pause in refinery attacks that came amid heavy pressure from the Trump administration to halt such operations.”

The publication reviews, “Ukrainian forces last hit an oil refinery on Oct. 15, and had not struck Russian oil infrastructure of any kind since Oct. 20. The pause took place against a background of repeated demands by Trump and other U.S. officials to stop hitting refineries.”

Trump envoy Jared Kushner had reportedly asked Kiev to abide by a 30-day halt. President Zelensky later said he agreed to a brief pause in the strikes, but did so begrudgingly.

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“Never-Ending” Cruise Hits Dead End: Passengers Stranded In Cambodia As Fuel Bill Sinks Voyage

Villa Vie Residences suspended operations of its 650-passenger residential cruise ship on Tuesday, citing “extraordinary“ fuel costs that have placed its business model under unsustainable financial pressure.

The Florida-based operator is evaluating restructuring and recapitalization options as it coordinates the disembarkation of passengers from its Odyssey ship, moored off Cambodia.

Fuel costs have soared more than 300% since the Gulf conflict erupted in late February.

Very low sulfur fuel oil (VLSFO), a marine fuel used to power large ships, rose to $966 a metric ton in Singapore earlier today. At the onset of the conflict, the maritime fuel jumped to nearly $1,200 a metric ton, up from prewar levels of around $500.

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The Energy Crisis Escalates: The Dual Threat Of More War In The Middle East And Hurricane Isaias Damaging U.S. Refineries In The Gulf Is Pushing Oil Prices Even Higher

Just when it seemed like we had hit a period of relative calm, global events are starting to accelerate again. Within the past 24 hours, there have been a couple of absolutely enormous developments. First of all, Tropical Storm Isaias has become Hurricane Isaias and we are being told that it will make landfall along the Gulf Coast. That is potentially a major problem because the Gulf Coast accounts for over 50 percent of the crude oil refining capacity in the United States. If any of that capacity is taken offline for an extended period of time, that will drive fuel prices substantially higher. Meanwhile, Iran has been attacking tankers at a very alarming pace this week, and President Trump is reportedly considering a new wave of airstrikes on Iran…

This is a major bombshell.

If the U.S. starts extensively bombing Iran again, the war in the Middle East could spiral completely out of control.

The good news is that President Trump is now pledging that the U.S. will not be bombing Iran until after the midterms…

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Major Oil Spill From Attacked Tanker Forces Closure Of UAE Beaches

Amid the record pace in Iranian attacks on crude tankers in the Strait of Hormuz, many have been wondering: where does all that oil end up when it comes to severely damaged or sunken tankers?

On Friday the UAE has confirmed a deeply alarming event: some of its beaches are being shuttered as a major spill is washing up after a tanker was struck by a projectile off the UAE coast, resulting in a fire aboard the vessel and apparent major spillage. The attack incident happened earlier in October.

Authorities have “detected a tanker oil spill affecting Umm Al Quwain’s beaches,” the Ministry of Climate Change and Environment announced in a statement.

It confirmed that the emirate in question was forced to close its beaches, and that “teams immediately began containment, cordoning, clean-up and remediation… to limit environmental impacts.”

International reports have identified that the leak resulted from the Oct.9 incident involving the GEM NO.2 tanker, which had been detailed by the UKMTO

“Gem No. 2, was hit by a projectile Friday off the coast of the UAE resulting in a fire onboard. The ship departed Ras Tanura, Saudi Arabia, in March and has remained in the Persian Gulf since the war began,” as reported at the time.

The last week saw increasing complaints by beach area residents of unusual smells – reports that were initially brushed off by local authorities. One regional Gulf outlet documents the following timeline:

October 19: Unusual smells reported

Reports of unusual odours emerged on Monday, October 19, in Sharjah and other parts of the UAE.

The reports prompted authorities to begin monitoring the situation in coordination with federal and local government agencies.

Authorities conducted inspections and assessments to identify the source of the smells and determine whether they posed any risk to residents.

October 20: Sharjah Police reassure residents

Lieutenant General Abdullah Mubarak bin Amer, Commander-in-Chief of Sharjah Police, addressed public concerns during the Direct Line programme broadcast on Sharjah TV and Radio.

He said the situation was safe and stable, with no indication of a threat to public health or safety.

October 21: Environment ministry provides initial findings

The Ministry of Climate Change and Environment confirmed that it was coordinating with local authorities to investigate unusual odours detected in several areas.

The ministry said its assessments found no cause for concern.

Field monitoring and response efforts were continuing to reduce the odours and help them dissipate.

But then by Friday the oil spill impacting beaches was belatedly confirmed. This came long after oil-like smells began to inundate local social media, and government office call centers.

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The Biggest Winners And Losers From The Petrodollar’s Decline

The Iran war is straining US weapons stockpiles and raising doubts about Washington’s ability to protect the Persian Gulf.

If that weakens the petrodollar and pushes oil producers away from the US financial system, two assets face clear headwinds: the US dollar and US Treasuries.

The petrodollar system helped create structural demand for both.

If oil exporters sell more energy outside the dollar system, fewer oil dollars need to flow back through Wall Street and into Treasury securities.

At the same time, the US government needs to borrow staggering sums to finance its deficits, military commitments, entitlement programs, and interest expense.

That means rising supply of Treasuries could collide with weakening structural demand.

Watch the 10-year Treasury yield.

The 10-year Treasury yield is perhaps the most important financial benchmark in the global fiat system, as it drives valuations and market trends worldwide. It is widely – and erroneously – regarded as the risk-free rate of return.

The 10-year Treasury yield can be thought of as a key barometer of the US dollar-based fiat system – a critical measure akin to its beating heart.

Bond yields move inversely to bond prices. When bond prices fall, bond yields rise.

A rising 10-year Treasury yield signals trouble for the US dollar because it means investors are selling Treasuries, which pushes up the US government’s borrowing costs. That is why the 10-year Treasury yield is a major pain point for the US government.

The 10-year Treasury yield was 3.97% in late February 2026. Now it is around 5.26%, an increase of roughly 129 basis points. 129 bps might not seem like much, but with over $40 trillion in debt and growing, every basis point matters.

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Western Media Accept Trump’s Plundering of Venezuelan Oil as Business as Usual

Since the January 3, 2026, military strikes and kidnapping of President Nicolás Maduro, the Trump administration has imposed semi-colonial rule over Venezuela, forcing dramatic shifts in the country’s domestic and foreign policies.

The capstone of the new tutelary regime is an oil deal announced in late August that Trump called “the biggest in history.” The agreement turns over 17 prime oilfields, holding over 20% of the country’s reserves, to a Pentagon-controlled corporation tasked with supplying cheap fuel to the US war machine for decades to come.

After spending years manufacturing consent for US-sponsored regime change in Venezuela (e.g., FAIR.org, 6/4/21, 1/11/23, 2/12/25), having a government in Caracas subservient to Washington represented a new scenario for the corporate media. The novel conditions have raised few significant qualms for Western outlets. Tactical objections notwithstanding, there is no fundamental disagreement with the US running the affairs of a Global South country.

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Record Tanker Rates Leave Heavy Crude Stranded In The Americas

The Middle East crisis has driven tanker rates to all-time highs and created a shortage of vessels. This oil logistics problem is now causing a ripple effect, tipping the heavy crude market in North and South America into oversupply – while Asia and Europe grapple with a shortage of heavy grades.

Canada is producing over 5 million barrels of crude daily, most of it heavy crude. Some 4 million barrels daily of that goes south to U.S. refineries. Venezuelan production has also moved higher after the U.S. disposed of the country’s government and took control of the oil industry. According to Reuters, a lot of this heavy crude is stuck at home because of the record freight costs that have dampened appetite, pressuring prices in Canada, Colombia, and Ecuador. Venezuelan crude goes mostly to the U.S. Gulf Coast, so it is not as vulnerable to freight rate developments.

Prices for Canadian, Colombia, and Ecuadorian heavy crude have all shed some $10 per barrel in recent weeks, the report said, citing Argus data. All the flagship grades are now trading at the lowest in six weeks, with Western Canadian Select reaching $74 per barrel last week, before rebounding to $79.50 at the time of writing.

Ecuador’s flagship heavy crude grade, Oriente, has also recovered, after dropping to $76 per barrel last week, now trading at over 84 per barrel. Colombia’s Vasconia was the most expensive of the three last week, trading at $84 per barrel, and it has also probably gone up this week, as all oil gains on the flurry of tanker attacks in the Strait of Hormuz.

These prices cited above seem quite enticing on a market where Russian Urals fetches close to $120 per barrel, and Iran Light sells for $104 per barrel, despite the U.S. Navy blockade. However, these prices exclude freight costs and insurance, and these have reached up to $40 per barrel of crude, at a time when heavy crude is in especially strong demand because of the global diesel crunch. Heavy crude yields more diesel than lighter grades, which is quite a hot topic right now.

“You need a ship and the price of ships are going up, and the availability ships are going down,” TP ICAP analyst Scott Shelton told Reuters. Global tanker rates have soared this year due to Middle Eastern producers taking to ship-to-ship transfers outside the Strait of Hormuz. For this, they use shuttle tankers, including smaller carriers, to sneak the oil through Hormuz and then load it on supertankers in the Gulf of Oman. As a result, supertanker rates from the Gulf to Asia hit $1.4 million daily earlier this month.

Shipping costs on the route from the U.S. Gulf Coast to Europe, meanwhile, have surged to $46 million in total, equal to $24.50 per barrel of crude. That compares to $6.5 million, or some $4 per barrel, before the war. The price is even higher on the route from the Americas to Asia, at over $80 million or $40 per barrel. It is little wonder why refiners in Europe and Asia are balking at the price and staying away from purchases.

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