As of this writing, sanctions imposed by the United States and most of the countries of the Old Continent against Russia are detrimental to Europe, increasing hunger in the poorest countries of the world, while reducing energy costs for China and India. Revenue of Member States of the Organization of Petroleum Exporting Countries, OPEC.
That is, in the current geopolitical struggle to control markets, drastic measures taken to remove Russia from the list of the world’s top 10 economies will prevent the distribution of world fertilizers while at the same time reducing costs. Energy for both old and new players in China and India. In addition, the increase in oil and gas yields higher returns for OPEC countries, who do not need to increase oil production to capture more resources.
Specific. Assuming Russian gas transfer from the United States would cost Europe 40 percent more, India and China buy fossil fuels from Russia at a discount of up to 30 percent.
And because gas is the raw material for fertilizer production, food prices are rising. In fact, Svein Tore Holsether, CEO of Yara International, a leading fertilizer producer last March, predicted that sanctions against Russia would increase fertilizer costs.
“As a result of the record price of natural gas, which is considered a key component of nitrogen-based fertilizers, our company has reduced its production of ammonia and urea in Europe by 45%,” he said.
Moody’s also warned that a shortage of basic commodities could lead to rising food prices.
By blunting the supply chain of Russia, the world’s largest crude oil exporter, the United States and Europe have pushed up oil and gas prices, with petrol and diesel prices having an immediate effect on consumer prices. In all the countries known as the Western world.
To reduce inflation, the EU seeks to reduce energy prices, which in other parts of the economy will be even further away from converting Russian gas from the United States. 40 percent higher prices will benefit the country’s oil companies.
Sanctions hit Europe hard, and the IMF revised its forecasts for 143 countries. Of these, Europeans are of particular importance as the most affected by the war, not only in the present but also in the future, says Boss Pineda in the article. Europe in crisis due to inflation and war.
But instead of lifting sanctions while inflation is already in the two-year digits, the respective central banks of European countries are leaning towards monetary action. They plan to raise interest rates to encourage consumers to choose to keep their money in banks and to encourage spending that puts pressure on the prices of consumer goods.
“Inflation in the euro area rose to 7.5 percent last month, representing 1.6 percent growth compared to February,” according to a preliminary estimate released by the Eurostat Office for Social Statistics.
The main explanation for this dizzying rise is found in energy prices, an annual growth rate of 44.7 per cent, which is ten points higher than the increase recorded in February, which was already 32 per cent.
Vicente Nieves, in his article The failure of the euro against the dollar doubles the pressure to raise ECB rates immediately.Says “The pressure on the European Central Bank to start raising interest rates is increasing and is coming from various quarters.
On the one hand, the consumer price index, IPC, is at an all-time high in the short history of the block. On the other hand, looking a little further into the future, industrial production prices (which take about six months to fully convert to CPI) continue to reach new highs.
“As if this were not enough, Russia’s invasion of Ukraine has dealt a severe blow to the euro, pushing up import prices (many of which are worth the dollar) and threatening to increase inflationary pressures. Previously approved, but for reasons contrary to the present, ”he added.
As the eurozone tries to offset the impact of inflation on the euro’s weakness and higher energy costs, the newspaper Country China’s economy, the world’s second largest, has grown by 4.8% year-on-year in the first quarter of 2022, more than expected, although the effects of the devastating Kovit wave from the onset of epidemics and epidemics threaten to be felt in the coming months of war in Ukraine.
“Analysts estimate that GDP growth will be 4.3% year-on-year in the first three months of the year, compared with experts’ estimates of 0.6% in the previous quarter, according to data released by the Office for National Statistics (ONE).” The Chinese government has set a growth target of “about 5.5%” by 2022, the lowest in three decades.
Behind China’s economic growth, Russia’s purchase of up to 30% off oil has also benefited India. Both countries have said they have no demands for the use of sanctions, including halting the purchase of crude oil from the major Eurasian country.
“India is one of the G20 members. With a value of டிர 3 trillion, it is a growing world power and the most populous country in human history. It is the largest democracy in the Indo-Pacific region, home to nearly two-thirds of the world’s economy and plays a vital role, “said George Lipori. Relations between the EU and India face a new chapter under the shadow of the Ukraine war.
In this context, as Western nations seek to open oil pipelines, OPEC members and ten other producing nations have limited themselves to supporting a moderate and gradual increase of just 432,000 barrels per day, as planned at their latest meeting from July. 2021. The project has set a joint production limit of 42,558 million barrels (mbd) per day from June 1.
For the third time since the beginning of the conflict in Ukraine, OPEC and Russia have met in an oil alliance, confirming a frightening increase in pumping, without reacting to the current rise in the price of “black gold” in the energy markets. Conflict, he says.france24.com.
Shell exports Trinidad and Tobago BTVSA and Chevron left border gas
Shell recently announced that Trinidad and Tobago (a subsidiary of Shell PLC, through BG International), has begun production on Block 22 and NCMA-4 in the North Coast Ocean area (NCMA) in Trinidad and Tobago.
Colibri’s launch comes after the revision of the Block 6 Product Sharing Agreement for the Manatí sector, which represents another important milestone in Shell’s development strategy in the country. Atlantic LNG says it will enable domestic and international gas distribution through Atlantic LNG, a subsidiary of Trinidad and Tobago Limited. World Energy Trade.
The background to this announcement is that in November 2021 Trinidad and Tobago signed an agreement with Shell to allow the exploitation of natural gas fields in the Lauren Field, which stretches across the maritime border with Venezuela.
Prime Minister Keith Rowley presented the agreement signed between the Government of Trinidad and Tobago and Shell Trinidad and Tobago Limited and Shell Trinidad and Tobago Resources.
Rowley said the deal would affect the shallow water field that runs along the maritime border between Trinidad and Tobago and Venezuela.
The Manatti Field estimates gas reserves of approximately 800 billion cubic meters and is part of the Loren-Manati cross border between Trinidad and Tobago and Venezuela.
The President recalled that in August 2010, Trinidad and Tobago and Venezuela signed the so-called United Agreement on the Exploitation and Development of the Laurent-Manatti Field.
However, Trinidad and Tobago and Venezuela canceled an agreement they had signed to jointly develop a natural gas field on their maritime border in the Lorraine-Manatti region due to US sanctions against the PTVSA.
“The cancellation affected Chevron, an American company with a 60% stake in the Lauren sector – the remaining 40% owned by PDVSA – to participate in the growth of the Lauren-Manati sector,” the official clarified.
“As a result of all this, the Trinidad and Tobago and Venezuelan governments have agreed to independent development within the Lorraine-Manatti cross-border, each within its maritime area,” Rowley clarified.
The Lorraine-Manatti gas fields cross the maritime border between Trinidad and Tobago and Venezuela. It is estimated to contain 10.2 trillion cubic feet (TCF) of gas, of which approximately 74% belongs to Venezuela and the remaining 26% to Trinidad and Tobago.
The decision to act independently in the development of cross-border fields created an opportunity for the government as the owner of the resources and Shell as a contractor to make progress in exploiting natural gas reserves, the official added.
Rowley pointed out that the product sharing agreement for Manati is 25 years old, and that Shell has been a key partner for Trinidad and Tobago in the development of the energy sector and cross-border efforts. With the Venezuelan government. .
According to the latest data provided by Bloomberg, Venezuela is the largest gas deposit of 6 billion cubic meters south of the Caribbean Sea. In fact, according to the Organization of the Petroleum Exporting Countries (OPEC), Venezuela’s proven reserves rank eighth in the world.
In fact, its reserves are almost four times that of natural gas in other Latin American countries. According to the latest data, by the end of 2020, the production capacity in the Venezuelan region will exceed 27,000 million cubic meters.
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