Oil Spikes, Stocks Dump As Van Rompuy Gives Green Light To Extend Russian Sanctions To Oil

Tyler Durden's picture

Curious why Brent just spiked by over 1% (and the S&P500 took a leg lower)? The reason is headlines from Reuters citing Europe's unelected dictator, Van Rompuy who has said that sanctions should include Oil technology. However, in a hilarious twist, the unellected muppet of Europe's insolvent banks, hopes to get his sanctions cake and snort Russia's gas too, adding that Europe's sanctions should exclude the gas sector.

  • LETTER FROM EU COUNCIL HEAD VAN ROMPUY TO MEMBER STATES SAYS RESTRICTIONS ON SUPPLYING TECHNOLOGY TO RUSSIA SHOULD INCLUDE OIL, BUT EXCLUDE GAS SECTOR-EU SOURCES

More from Reuters:

EU leaders seeking to agree sanctions against Russia over its actions in Ukraine are expected to include oil technology but exclude technology for Russia's all-important gas sector, EU sources said on Friday.

 

The scaling back of the EU's ambitions shows the difficulty of agreeing forceful sanctions against Russia without risking damage to the bloc's fragile economy.

 

Two sources quoted from an official letter sent to EU heads of government outlining "an emerging consensus on some key principles".

Here it appears that Europe's unelected leaders are somehow deluding themselves that if faced with escalating sanctions, Russia will not unilaterally cut off the gas to Europe.

It gets better. Reuters also added the following:

  • LETTER FROM EU COUNCIL HEAD VAN ROMPUY ASKS EU LEADERS TO DELEGATE AUTHORITY TO AGREE TO RUSSIA SANCTIONS TO AMBASSADORS, AVOIDING NEED FOR SUMMIT-EU DIPLOMAT

Why? So that when things really escalate out of hand, and Russia does half gas deliveries sending Europe into a triple-dip recession or outright depression, the population will demand scalps. At that point the unelected Van Rompuys can say: "hey, don't blame us. It was all the ambassadors fault."

Lest anyone thinks that Russia is anywhere close to "blinking", allow us to disabuse you of such naive thoughts with these Reuters and BBG headlines:

  • RUSSIA SAYS UKRAINE SHELLED RUSSIAN TERRITORY WITH THE INTENT TO KILL LAW ENFORCEMENT OFFICERS; PROOF FOR `FALSE' U.S. CLAIMS `SIMPLY DOESN'T EXIST' - -INVESTIGATIVE COMMITTEE STATEMENT;

But the biggest telltale is what we have said the latest escalation is all about: the South Stream - the Russian nat gas pipeline which would circumvent Ukraine entirely. "A draft document on possible sanctions on Thursday also laid out a range of technologies that could be restricted, which could have delayed development of Russia's South Stream gas project to ship gas to Europe via the Black Sea."

Because just like with Syria, so with Ukraine and all the associated brewhaha, at the heart of the ongoing conflict is nothing more than Europe's addiction to Russian energy.

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NoDebt's picture

Thank you, Tylers.  You are true gentlemen.  You treat your guests well.

Now, where's that "buy" button?  Ah, here it is.

icanhasbailout's picture

And for my next trick, keep a close eye on the remaining testicle!

knukles's picture

Do I have to shave it first?

john39's picture

damn. I knew i should have filled the car up this morning...

Goldenballs's picture

Totally embarassing how arrogant and out of touch people like the low grade belgian bank clerk are.The EU most expensive,useless,draconian disaster known in the history of the entire world.Its only result is taking Europe to bankruptcy,despair and ultimately civil war.How to leave a continent povertystricken and destroyed in one lesson,set up theEUSSR.An absolute frigging disgrace.

Run by Gimps,to employ Gimps with total destruction the end result.

Oracle 911's picture

As resident of EU I can say, I hope H. van Rompuy get a prostate examination from a donkey/horse and an elephant male (poor animals putting they cocks into this kind of garbage).

TahoeBilly2012's picture

Von "Rumpboy" he comes from a little town in Belgium where boys bottoms are revered like fine wine.

Oracle 911's picture

Well trash is trash and doesn't matter where you found it, even if it is in the small Belgium town or in the EU headquarters.

BTW my 1st reaction when I saw that guy: he looks like a child abuser.

 

And the private massage for that guy who down-voted me: You are an Eurotard supporter. :)

FlyingDutchman's picture

He gets paraded on television here in Belgium regularly.

One look on his wife proves he's not interested in women.

Funny note : his sister is active in the communist party, she's probably the most sane member of the nest he came from.

Oracle 911's picture

I Googled his wife, you are right.

williambanzai7's picture

This is what happens when you cross a donkey with a baboon and put him in a suit.

Wahooo's picture

Did you just tip your hand on your next piece of art?

El Vaquero's picture

I'm sure that copulation left a mark.

falak pema's picture

depends what part of each he inherited...

Judging by his voice...hew haw! 

Fortunately he is on his way out along with Barroso and Lady fish n chips.

Wahooo's picture

Van Rumpie?  NSA must have some great photos of this guy.

NotApplicable's picture

Rest assured that ALL politicos in positions of power have been thoroughly "vetted."

_ConanTheLibertarian_'s picture

Some pedo stuff surely. That clown is a total freak.

IronForge's picture

Speaking of Paedophiles from Belgium, the Catholic Church comes to mind...

https://en.wikipedia.org/wiki/Religion_in_Belgium (RCC tops with 58% of Population)
https://en.wikipedia.org/wiki/Catholic_sexual_abuse_scandal_in_Europe#Be...
http://www.religioustolerance.org/clergy_sex29.htm
http://uk.reuters.com/article/2010/09/10/uk-belgium-church-abuse-idUKTRE...

"...almost every Institution was host to an incident"

Europeans REALLY need to start prosecuting Paedophile Clergy.  Since the RCC has passed a Decree NOT to cooperate with Govt Authorities, they're engaging in Acts against the Sovereignty of Nation-States, Terror, and abetting Child(Sex/Drug/Money/Labor all included) Traffickers.

I'm an ex-Protestant.  My stance wrt upholding the Rule of Law and the Catholic/Mormon/JW/Xian Science rush to supress/sabotage me at Work/Military/Civil Service provides testimony as to their positions as "Enemies of Nation-States and Humanity in General". 

I'm inclined to believe that most "Like-minded People" - especially Sociopaths - tend to congregate and support each other.

IronForge's picture

Coincidentally, Mr. von Rompuy is...a Roman Catholic... Surprise!!!

https://en.wikipedia.org/wiki/Herman_Van_Rompuy

I stated earlier here in ZH that in addition to the Ukraine Crisis being one of Ethnicities and Political Leanings, it's also one about Religious Affiliations as well. 

tony wilson's picture

boroso supplies the kidnapped children to order.

brings the little ones in a sack to van rumpies masonic office then they fight naked over who gets to slit the stolen childrens throats.

and some folks say satanism is cool?

SheepDog-One's picture

Anyone who actually believes 'satan' is anything more than a comic book character is a dumb superstitious dark ages villager.

cro_maat's picture

"Satan" is the collosal aggregate of egos that TPTB have created over many lifetimes. They have done such a good job in creating these lustful, greedy, power mad egos that they are completely ruled by the beast.

Soon they will be seeing my friend Anubus who will weigh their hearts against a feather and render judgement. Karma can not be avoided!

Urban Redneck's picture

I guess that little shit thinks his limousine runs off the hot air he spews out his ass, as opposed to an oil product.

I somehow doubt he will advocate cutting the high fuel taxes in the EU to compensate for the economic pain inflicted on the masses by rising oil prices.

Sudden Debt's picture

You'd expect gold and silver to jump bigtime... But... Yeah... Fuck it...

NoDebt's picture

Barbarous ones at that.

chunga's picture

The price of gas at the pump has to be manipulated too. It seems not too long ago if there was the slightest disagreement in the middle east the price at the pump would go up 5 minutes later. Then it would stay there for a long time while things "stabilized". Now that we've got wars popping up every day that doesn't seem to happen anymore.

Move along...go for a ride to the mall...everything is fine.

Berspankme's picture

would love to see rumpboy and putin in a cage match. filthy europussy

varnelius's picture

Ooh, think of what the PPV $$ would do for GDP.

Kina's picture

VAN ROMPUY is one creepy sick fuck. You can just see him wandering around concentration camps taking video for fun later.

 

CrashisOptimistic's picture

At some point, very soon, Russia will have a discussion internally that goes like this:

We can maintain 10.5 million bpd for another 6 years or so before decline arrives, as it arrives in all oil fields.

But the measurement of oil doesn't have to be barrels per day.  It can be barrels.  We have a lot underground that our grandchildren may need.  If we cut back to, say, 6 million bpd, the price will go sharply higher to perhaps $140/barrel.

Now, we don't *lose* money regardless.  We just choose not to make money we might have made.  We'll have plenty to eat, we'll be able to transport the food and transport anything else we might need to.  Our enemies won't, but they can just go find their own oil.  We have no obligations to them, given that they clearly are behaving like enemies.

And so, we're going to choose to export less oil and gas.  Our future needs that oil and gas and we care more about our future than our enemies' present.

Variance Doc's picture

Exactly right!  The USSA really has no clue what year it is; circa 1950 thought processes.

Buck Johnson's picture

Bingo, bingo.  You said it best and that is what they will do.   They have been talking and I bet that they know that the west want Russia out of the picture so they have to think and fight the west where it hurts, their pocket.  You see everything is alright as long as those govt. checks continue and I'm able to buy food and such.  But once those checks stop and milk is 10 dollars a gallon and I can't get my money out of the bank they know that Americans and most of the west will riot and go mad with anger and it will be all the US can do to keep their own people from dragging the govt. down.

LostandFound's picture

I suspect it will get to a point where countries in the world will be more independant rather than rely on interdependance between nations. Particularly the ones with the resources.

The more i see things unfolding the more i am starting to believe that the wars in the middle east and the cold war that is heating up with Russia is a western plan to collapse the global economy.

It is becoming clear that the emporer has no clothes, that the US will go into recession officially during this year and that Europe will also continue heading into depression and there is no monetary policy that can save them.

They are looking for a scapegoat and that will be the price of Oil, Putin and the Middle East. The world is barely growing on $100 barrel of oil.

Thoughts anyone?

junction's picture

Van Rumpuy? Any relation to

Rumpelstiltskin?
passenger_pidgin's picture

Actually, I'm pretty sure he's a close relation to the Grinch who stole Christmas.

firstdivision's picture

LOL!  There we go, excluding the NG sector from any of the sanctions.  Putin should just have some "maintenance outages" on the pipelines in December.

barre-de-rire's picture

hey, i just need gas !

and this is crazy !

i give you my number !

call me mid-october, maybe !

 

/s

Againstthelie's picture

That's what USrael would like.

Russia has been EXTREMELY reliable with it's energy deliveries to Europe. No matter what happened in Russia, the deliveries were never affected over many decades.

USrael would hit several flies with one strike:

Damage Russia's reliability as energy supporter.

Sell own, more expensive energy.

Damage Germany's but also Europe's industry, which would also affect the Euro.

For the same reason the Angloamericans are the biggest supporters of the EU-expansion with countries, that do not fit: Turkey, Moldova, Ukraine.

It's no coincidence, that Goldman Sachs helped Greece falsifying their finances, to get into the Euro-zone. A time bomb that worked very well, btw.

El Vaquero's picture

That's not going to work.  The problem is that Russia has the energy to export, and we do not.  That would not be cutting off our noses to spite our faces, that would be slitting our own throats to spite our heads.  

Kina's picture

I think Russia may have some technical difficulties for a day with it GAS pipeline supplying Europe.

CrashisOptimistic's picture

No, they have contracts. 

The correct way to deal with this is not renew them.  All future contracts should have a 1 month duration.

They don't have to ship that gas to Europe.  They have plenty of food.  Money doesn't really matter all that much when you have oil and gas.

CPL's picture

Well the EU ownership forgets that reality.  It's Russian roads, train tracks, cargo, labour, equipment and infrastructure that make it all happen.  And the day Russia wishes to turn off Europe.

It can anytime with the stroke of a pen.

DeliciousSteak's picture

Seems like EU is willing to take the hit after all. A bastion of freedom, justice and hope for all oppressed people. Good for you, EU.

Winston Churchill's picture

I hope you forgot the sarc tag. If not, lay off the windowpane, that was a bad batch of

Leary.

Billy Shears's picture

Gold only, thanks!

CrashisOptimistic's picture

Gold has no function in Russian society.  That is never going to happen.