Oil prices are down 20% from their recent wartime high. Gas prices are still quite high, but gas export volumes have dropped much more, as compared to oil.
The Nordstream pipeline is now operating at only 20% of capacity.
Russia's export volumes are expected to continue dropping this year due to sanctions. When prices drop (as they inevitably do eventually), Russian revenues are poised to drop off a cliff.
Widespread, or global recession could bring that price drop sooner, rather than later.
Not woth Slow Moe Joe and idiotic Euros stopping drilling... In a perfect world the US would be flooding the markets woth cheap oil right now,specifically targeted for domestic and EU consumption. And we would be pressuring Europe to expand their production.
The world consumes 90 million bbls of oil a day. Any significant decrease in consumption means that the global economy is in a recession or worse. During the Covid-19 lockdowns, the decline in consumption of oil was 13%. Our economy was in the toilet and only government bailouts (Fed printing money) mitigated the impact.
You can take solace that Russia and other major oil exporters will see reduced revenue, but the US economy along with Europe’s will be in tatters. We need high consumption of oil and gas to run our economies. US oil consumption is down about 8% now.
LOL, Russia only exports half the gas it used to export...except it is getting ten times more for it.
But it won’t. And I don’t believe a word of this article based on what I read today.
David Stockman’s analysis was much better and more true to form than the crap being spread out there:
https://www.lewrockwell.com/2022/07/david-stockman/europes-economic-suicide/
Oil prices may down a little now but could go back up and way more than the high.
I wish I had such problems.