Posted on 03/04/2022 11:46:52 AM PST by conservative98
Shell reportedly agreed to purchase Russia’s benchmark Urals crude from Trafigura Group at a record discount, confirming that many in the market continue to avoid the country’s oil but that at a bid still remains if the price is low enough.
Shell reportedly will pay a price around $28.45 below the going rate for Brent Crude, Bloomberg News reported Friday. Typically, Urals have priced two to three dollars below Brent.
The cargo has been bought on a delivered basis, according to Bloomberg. That means Shell won’t need to work out the transportation and will not be liable for payment if the cargo proves undeliverable.
The prior day, Trafigura had offered the cargo at a $22.70-a-barrel discount Brent but found there were no bids.
“The trade is the first such deal in a window organized by S&P Global Platts since Russia invaded Ukraine. While it underscores the deep discounts Russia is going to have to sell its oil at, it’s also the first indication that it will still find some willing buyers
(Excerpt) Read more at breitbart.com ...
OIL NOW AT 118!
Reminds me of something going around in the 60s—hell no I won’t go for Shell oil.
Such a deal! So will Shell pass on the savings to their customers?
That incredible discount is an indicator that Shell will never receive the oil.
Soon the mobs will be coming for Shell oil. Shut the stations down they will say. Congressional investigations. Shell Facebook and Twitter will be trolled and then shut down.
A little early to be drinking isn't it?
You’re probably right.
Water over ice. No alcohol though.
Russia is still making a profit, not as big as if they sold it at the going market but a profit nonetheless. Sell side market has only a small impact on production cost.
Rumored to jump another $.20 / gal today.
Chet Lemond
@ChetLemond
Alabama gas station manager says he has to remove up to 6 Joe Biden “I did that” stickers from his gas pumps per day.
https://twitter.com/ChetLemond/status/1499736246876356610
Catturd ™
@catturd2
I’m old enough to remember 1-10-22
https://twitter.com/catturd2/status/1499825443620507657
Biden administration hits the Hill to lobby Dems against GOP-backed Russia sanctions
But some centrists left the room noncommittal on Sen. Ted Cruz’s push to block a gas pipeline that would benefit Moscow.
Oh, they’ll get it all right. Otherwise the Russians don’t receive income which they badly need now.
It’s a dream of a deal.
Oh, and btw, the US is still allowed to import Russian oil. Whadaya know?
The writing was on the wall for all to see. Corrupt US politicians and needy Russians would keep the US the market open and Russian oil exports flowing to the US.
I picked up Gazprom and Sberbank with GTC low bids just before London halted trading.
Next time I get my oil changed, it’s Shell Rotella instead of the Mobil Delco.
The joke will be on Shell if Putin decides to nationalize all Russian oil.
That is why it was smart for Shell to secure the terms that they got.
Shell’s a big company and can survive just about anything but the PR on this ain’t good and I don’t see this as a profitable transaction once you subtract all the millions of X buyers of Shell products worldwide........... like myself.
I tried to pick up several Russian stocks but missed by a day....
G’rrrr.
.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.