The World’s Next Oil Shipping Corridor: The Arctic Ocean

“The so-called Northern Sea route connecting Europe to Asia via the northern coast of Russia has its advantages.  It’s a shorter and quicker route, and thus more energy efficient. And it avoids many of the geopolitical flash points that make shipping risky–instead of the Strait of Malacca, the Horn of Africa and Egypt’s Suez region, boats can hug the coat of Russia for a chilly but uneventful ride.  The route has been a viable shipping lane only in recent years, thanks to thinning Arctic ice cover. As the WSJ reported in mid-2013, energy companies have been keen to try out the prospect of a faster link between Russia’s giant oil and gas fields and the ports of China and Japan.”

http://blogs.wsj.com/corporate-intelligence/2014/07/09/the-worlds-next-oil-shipping-corridor-the-arctic-ocean/

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China-Russia gas deal creates Arctic winners and losers

“China’s deal with Russia could put downward pressure on LNG prices in East Asia, where they are generally the highest in the world. Unlike oil, which is sold on a global market, the market for LNG is regional. The deal between Gazprom and CNPC is rumored to be between $10 to $10.50 per million Btu, which is almost 25% cheaper than the current $13 spot price in Asia. As Reuters suggests, the relative bargain that China won from Gazprom means that other countries like Japan and South Korea might not have to pay as high prices. This could spell bad news for Canada and the U.S., which are eager to capitalize on high Asian gas prices by exporting their surplus gas.”

http://cryopolitics.com/2014/06/25/china-russia-gas-deal-creates-arctic-winners-and-losers/

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Ukraine crisis could halt Europe’s recovery, ECB warns

“Economic fallout from the political crisis over Ukraine threatens to derail Europe’s ‘weak, fragile and uneven’ recovery in the months ahead, the head of the European Central Bank admitted.  Hopes early this year that Europe was on the road back to prosperity have evaporated amid tit-for-tat sanctions between the EU and Russia over Ukraine, sharply increasing downside risks, Mario Draghi warned as the ECB kept rates at record low levels.  With even Germany experiencing an unforeseen slowdown in industrial production, the 18-nation eurozone has returned to the state of nervousness and gloom that characterised the years after the global economic…”

http://www.thetimes.co.uk/tto/business/markets/europe/article4169631.ece

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How the U.S. got mixed up in a fight over Kurdish oil

“The drama in Texas is just part of a global play being made by the Kurdistan Regional Government, which is desperately seeking money in the midst of turmoil in Iraq. The Kurds, many of whom have long sought an independent state, say the central government in Baghdad has stopped providing the northern region with its share of the national budget.  But if the Kurds could sell their own oil, they would also potentially secure the financial base they need to finally declare their independence.  At stake is the U.S. goal of a unified Iraq, and the Obama administration is stuck in the middle of the dispute, having invested tremendous effort in securing Iraqi federalism and its constitution.”

http://www.washingtonpost.com/business/economy/how-the-us-got-mixed-up-in-a-fight-over-kurdish-oil–with-a-unified-iraq-at-stake/2014/08/04/4a00a6e2-1900-11e4-9e3b-7f2f110c6265_story.html

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Ron Paul: US Sanctions on Russia May Sink the Dollar

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“European banks are already cutting ties with American citizens and businesses due to the stringent compliance required by recently-passed laws such as FATCA (Foreign Account Tax Compliance Act). In the IRS’s quest to suck in as much tax dollars as possible from around the world, the agency has made Americans into the pariahs of the international financial system. As the burdens the US government places on European banks grow heavier, it should be expected that more and more European banks will reduce their exposure to the United States and to the dollar, eventually leaving the US isolated. Attempting to isolate Russia, the US actually isolates itself.”

http://www.thedailybell.com/editorials/35547/Ron-Paul-US-Sanctions-on-Russia-May-Sink-the-Dollar/

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Russia takes aim at McDonald’s burgers as U.S. ties worsen

“McDonald’s burgers and shakes may become the latest victims of worsening ties between Moscow and Washington after a Russian consumer watchdog agency accused the U.S. chain of sanitary violations.  McDonald’s Corp , which opened its first Russian restaurant in Moscow in 1990, became an iconic symbol of flourishing American capitalism during the fall of the Soviet Union.  But its Golden Arches may be in the Kremlin’s crosshairs as ties between Moscow and Washington have fallen to their lowest point since the end of the Cold War with consecutive rounds of U.S. sanctions over Russia’s role in the Ukraine crisis.”

http://finance.yahoo.com/news/russian-consumer-watchdog-seeks-ban-mcdonalds-products-090124454–sector.html

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Russia to block US agricultural imports

“Russian President Vladimir Putin on Wednesday hit back hard against countries that have imposed sanctions over the Ukraine crisis, ordering trade cuts that an official said would include a ban on all imports of agricultural products from the United States.  White House spokeswoman Laura Lucas Magnuson decried the move, saying ‘Retaliating against Western companies or countries will deepen Russia’s international isolation, causing further damage to its own economy.’  Russia last week banned the import of apples and some other fruits from Poland, saying this was because of sanitary concerns.”

http://finance.yahoo.com/news/report-russia-block-us-agricultural-imports-192324674–finance.html

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Ron Paul: Why Won’t Obama Just Leave Ukraine Alone?

“On Friday, President Obama requested Congressional approval to send US troops into Ukraine to train and equip its national guard. This even though in March, the president promised no US boots on the ground in Ukraine. The deployment will be funded with $19 million from a fund designated to fight global terrorism, signaling that the US considers the secessionists in Ukraine to be ‘terrorists.’  But let’s not forget that this whole crisis started with the US-sponsored coup against Ukraine’s elected president back in February. The US escalates while it demands that Russia de-escalate. How about all sides de-escalate?”

http://www.ronpaulinstitute.org/archives/featured-articles/2014/august/03/why-won%E2%80%99t-obama-just-leave-ukraine-alone.aspx

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Venezuela Seeks Buyer for Citgo Petroleum Refinery Unit

Petroleos de Venezuela SA is seeking a buyer for Citgo Petroleum Corp., its U.S. refining and marketing company, in a deal that may be worth as much as $15 billion.  The government of President Nicolas Maduro probably is looking to sell offshore refineries to boost hydrocarbons exports to China, raise cash and reduce the risk of having assets seized as part of PDVSA lawsuits abroad, GlobalSource Partners’ Ruth de Krivoy and Tamara Herrera said today in an e-mailed report to clients.  The sale of U.S. assets ‘would put PDVSA in a better position to negotiate settlements should adverse decisions be handed down in pending international arbitration cases,’ they wrote.”

http://www.bloomberg.com/news/2014-07-31/venezuela-seeks-buyer-for-citgo-petroleum-refinery-unit.html

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Thailand’s ruling junta approves China rail links worth $23bn

Thailand‘s ruling junta has approved a $23 billion (£13.6bn) transport project that will see two high-speed railways link up directly with China by 2021, in a move seen as a further consolidation of Chinese power in the region.  The National Council for Peace and Order (NCPO), headed by Gen Prayuth Chan-ocha – who took control of Thailand in a bloodless military coup in May – unveiled plans this week connecting the northern border town of Nong Khai with Map Ta Phut, located south-east of Bangkok. Chaing Khong, just south of the Laos capital Vientiane, will also be connected to Ban Phachi, in the central Ayutthaya regions.”

http://www.theguardian.com/world/2014/aug/01/thailand-junta-approve-china-rail-link-23bn

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