$38 A BARREL!
“Russia’s Flagship Oil Is Trading at Half Global Prices With Tiny Pool of Buyers”
“Urals crude oil traded at about $38 a barrel on Friday”
“Russia’s flagship oil is selling at less than half international prices — and way below a Group of Seven imposed cap — following sanctions targeting the Kremlin’s revenue from petroleum sales.
The nation’s Urals grade, a far bigger export stream than any other crude that Russia sells, was $37.80 a barrel at the Baltic Sea port of Primorsk on Friday, according to data provided by Argus Media. Global benchmark Brent settled at $78.57 on the same day.”
Peak China.
The Wolves are out.
“Controversial China Diplomat Zhao Shifted From High-Profile Role”
“China has transferred a senior diplomat closely associated with the Foreign Ministry’s more confrontational shift in recent years to a new role, in the latest sign that Beijing is rethinking its so-called “Wolf Warrior” approach.”
That is going to hurt.
My guess is that China and India have filled up their "petroleum reserve tanks" and have no more storage capability.
Other countries are unwilling to risk U.S. backlash for buying "Russian".
It's a buyer's market in Russian oil.
Lest we forget, the Russian budget is predicated on oil selling at US$70 BBL.
“$38 A BARREL!”
The Russian economy, and Federal Budget, are circling the drain. They sink or swim on the price of oil.
I am surprised how effective the price cap mechanism has been so far. I thought it would only be a marginal impact, but it seems to be taking a big bite out of Russian revenues.