Sunday, 28 April 2019

Dirty Russian Oil Has Made a Fragile Market Worse - Bloomberg

Dirty Russian Oil Has Made a Fragile Market Worse - Bloomberg:

President Donald Trump wants to strangle the Iranian economy and keep gas prices low for American drivers. The discovery that Russia has been exporting contaminated crude oil means any hopes that he could do both have all but evaporated.

Trump decided this month not to renew waivers that let countries buy Iranian oil without violating his sanctions, affecting eight nations that have exemptions expiring on May 2. This drove crude prices higher at a time when gasoline prices were already rising. Gas is up by nearly 30 percent since the start of the year and is now within 10 cents of last year’s peak, before America’s summer driving season has even started.

This harsher regime looks like it will stick. While some countries will try to persuade Trump to grant last-minute extensions, the current rhetoric from Washington doesn’t look encouraging. The exemptions that were made alongside the first wave of sanctions in November were unexpected. Offering a second round of waivers after saying there wouldn’t be any would, frankly, make Trump’s administration look stupid.

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