Midweek, President Trump told US oil companies such as Exxon Mobil, Chevron and Conoco Phillips to invest hundreds of billions and, possibly, trillions of dollars in developing Venezuelan oil wells. Venezuela has the world’s largest underground (undeveloped) oil reserves, 303 billion barrels. Though the ultimate increase in supply should lower prices of crude products for consumers, the oil companies are leery and want guarantees that the oil distribution systems can be constructed since Venezuelan infrastructure is in serious disrepair. As a White House meeting approached on Friday, March crude shot over 59.50 per bbl, the highest level in a month. That rally seemed to be triggered by unrest in Iran where protests and a blackout threatened production there.
The U.S. uses upwards of 20 million barrels of oil per day, more than 20% of the world’s supply. Most of the oil is used for gasoline, distillate fuels such as diesel fuel and heating oil, and hydrocarbon gas liquids including propane and butane. Oil, though, is used in a long list of commodities that surprises many consumers. Fertilizers on the farm and solvents in industry use significant amounts of what many call black gold. Lesser known uses include synthetic products like clothing and rubber along with more typical asphalt, lubricants, and waxes. Many people would be surprised to know that cosmetics, shampoos, perfumes and even food flavorings contain oil.
Only Slivers of Silver for Sale
Silver prices were up above 3.5% Friday morning, although light inventories suggest prices will continue to fluctuate due to what has been described as supply bottlenecks. London, where benchmark prices are set, reports supplies are especially low there. In what may be an effort to control the market, China has announced export controls on the grey metal that would further reduce the world’s short supply. The U.S. Geological Survey has recently listed silver as a critical mineral. China ranks second in global silver mine production, but the Chinese dominate the silver market through their large refining capability. The country controls up to 70 percent of the world’s refined silver supply.