Posted on 07/03/2022 11:29:00 AM PDT by Mount Athos
The price cap to be imposed on Russian oil to punish Moscow for its invasion of Ukraine is expected to be around half the current purchase price, Japanese Prime Minister Fumio Kishida said Sunday.
Kishida noted that Russia's war against Ukraine had caused prices to skyrocket, adding he had called on other leaders during the G-7 summit to work together to take measures against rising costs.
(Excerpt) Read more at msn.com ...
Why didn't economists figure out this before?
We can get half price everything this way!
Anyone who disagrees hates children and prosperity, please report to your local indoctrination and termination center.
If they are only willing to pay half price, guess what? No oil for you. 😂😂
Russians excel at black marketeering. Some near-neighbors are going to get rich.
Is it not the case that Russia was selling oil before sanctions at about half the current price? If so this basically says sanctions are over, apparently everyone can buy oil at the “bargain” price. The mendacious EU strikes again. Meanwhile we are sending two (count em, 2) anti aircraft missile units to help
Ukraine continue fighting and dying in a lost cause instead of negotiating a peace.
I hate Disney’s woke BS so I’ll only pay half price to get into Disneyworld
I’m getting suspicious that this whole thing has been planned and Russia and Ukraine are in on this together.
Like so many things are, it’s just been a Godsend to the Democrats.
Easy to do. Just cut wages in half.
“Russians excel at black marketeering. Some near-neighbors are going to get rich.”
Has anybody consulted with India and China on this? Last I heard they weren’t going along with the current sanctions scheme.
Since Putin may have some extra oil and fertilizer laying around he could sell it to Sri Lanka extra cheap and maybe save some people from starvation. That would normally get you a Noble Peace Prize. I’m no Putin fan I just look at the world with some realism.
And when half of your GDP is oil, which do you choose: accept what you are offered or stop producing and throw your country into a depression?
Someone has finally figured out how Russia works.
Price deterioration is happening organically. Natural gas is 5.6 down from a peak of 9. WTI crude is 108 down from 123. We have a lot farther to fall imo.
Neighboring states don’t have the infrastructure to transport that amount of Russian oil overland.
Looks like G7 plans to interfere with “ global shipping” to make sure the 3/4 of the globe that is against sanctions is compliant with their elitist masters.
Instead of price controls nationally, they are will take a 100% failed idea global this time.
Brilliant!
That’s American prices!
Look at this chart of European natural gas prices:
https://tradingeconomics.com/commodity/eu-natural-gas
It is not a macroeconomic price control. It would be targeted at one supplier only.
Price cap on Russian oil to be about half of current price: Japan PM with the genius great idea on how to make Russian oil even cheaper! India and China will be thrilled!
Energy prices are ultimately fungible. Demand destruction works it's way through as a wave. Parabolic shifts upward don't resolve sideways.
Russia maybe has the rail infrastructure to get some oil to China. NatGas is a different story.
As I understand it this scheme involves making insurance on ships carrying Russian oil or even other sanctioned goods impossible to get unless the “price controls” are complied with. Insurance is not just for value of ship and cargo but also for things like spills other other damage in various countries territorial waters.
Not sure how China would react to that kind of a scheme.
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.