Posted on 07/26/2022 4:53:19 AM PDT by MtnClimber
If ever there were a situation that would seem to parallel the old saying that something is like sending “coal to Newcastle” – meaning doing something that is pointless – it would be sending oil to Saudi Arabia. Yet, there is a reason that the number two oil producer in the world is importing significant and increasing amounts of oil from Russia. And it illustrates the pointlessness and counterproductivity of the sanctions on Russian oil sales spearheaded by the Biden administration that have helped send the price of crude oil soaring.
Oil is sold on a global market. Restricting sales via refusing to buy oil from one producer like Russia does not mean that the Russian oil stays in the ground or accumulates in storage facilities. It just means that the Russian oil will find other buyers who will pay a little less than Russia would have gotten without the sanctions.
But the discount comes off of the higher prices set on the world market as the countries imposing sanctions have to turn elsewhere to bid for oil supplies. They have to pay more, and the world market price for oil goes up. Joe Biden likes to call out the “Putin Price hike,” and this is what he means.
Meanwhile, Saudi Arabia is buying the Russian oil at a discount from the higher world prices caused by imposing the sanctions (and the Biden administration’s limits on oil exploration, production and transport in the United States, but that’s a separate issue).
SNIP
Saudi Arabia is able to sell the oil it used to use for electricity generation on the world oil market and reap much higher prices than it pays to Russia, and much higher prices than it used to receive before the sanctions were imposed.
(Excerpt) Read more at americanthinker.com ...
Biden still has his boot on the neck of the US oil industry which could bring down world oil prices and reduce the revenue Putin is getting.
Saudi Arabia is able to sell the oil it used to use for electricity generation on the world oil market and reap much higher prices than it pays to Russia
Buy low, sell high. No mystery here.
It also means Russian sanctions are a joke.
Odd, you’d think there would be a term for this phenomenon.
Oh yeah, it’s called a Fungible Commodity.
Huh, who would have thunk it?
And “they” knew about all this back when POTATUS was shutting down US energy production to raise prices even before Putin delayed his invasion a few days after Biden directed.
It’s all a scam. Putin isn’t even the “enemy”. He’s one of the players.
The chump is the American taxpayer.
What’s going on in Ukraine isn’t a war.
It’s a mutually agreed upon noisy occupation for the purposes of scamming hundreds of billions from the American taxpayer.
And people, even after everything they’ve seen the last three years, are allowing themselves to be suckered.
Again.
I won’t print the rest of what I’m thinking.
It’s pejorative in the extreme.
I will be very surprised if Saudi Arabia doesn’t follow Iran and Argentina into BRICS. The Saudis fear and despise the two major western foreign policy initiatives, the exportation of the New Green Deal and western perversions. The western assault on Russian banking and their economy also pushes the Saudis and the rest of the non aligned world towards alternatives. The globalists in Brussels and DC could bring the same sanctions to bear on Riyadh or New Delhi. They are wisely taking proactive action now.
Does anyone have any confidence that Biden, Obama, Blinken, Klain, Yellen, etc... understand any of this? I doubt they even understand it well enough to know how it supports their destructive agenda.
Speaking of Saudi Arabia, I’ll bet gas prices are kept low in that country, unlike what’s happening in America.
Let's Go Brandon.
Correct. Its just a shell game. India is doing the same.
Even better, EU regulations say they can import oil so long as less than 50% of it comes from Russia. So, they’ll fill every tanker with 51% Saudi crude and leave the tanker 49% full with Russian crude and then voila! It can now be imported into Europe....at higher prices of course. The Russians still sell their oil and the Saudis buy at slightly lower prices from the Russkies and sell at somewhat higher prices to the Yurps. Classic arbitrage - profit without risk.
You bet your sweet bippy it’s low.
Also no mystery: we buy estra oil from Saudi, which is actually Russian oil, w/o appearing to buy the taboo Russian oil. “Shell” game.
about $2.40 a gallon per my brother in Riyadh
Right now Saudi is at almost maximum production. They are simply buying oil at a steep discount from Russia and reselling it at great profit on the world market. A supertanker can hold 2 million barrels of oil. Russian oil is selling at about a 30 dollar discount. Saudi will make 60 million dollars less transportation costs. That is wise business.
It should be noted that oil comes in different grades which affects it price. The Russian oil from the Ural area is very high grade oil.
OIL IS FUNGIBLE. Someone please tell this to slow Joe Biden.
The utter level of journalism in this country has reached septic tank levels: confirmed.
Biden killed a US pipeline on day one of his term.
“You bet your sweet bippy [Saudi Arabia oil prices] are low.”
But they’re not out to save the world like we are.
Biden should buy oil from Russia to replenish the SPR.
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