Groan.
He either totally misunderstood the quote or misrepresented economics. The oil cap is price fixing among purchasers not sellers. An agreement among oil buyers to not pay more than a set amount. Like OPEC+ but for purchasers.
But, in the end Putin’s point is valid just not for the reason given. Sanctions and purchase price fixing wont work due to black markets.
Black markets work with pot and fentanyl, but not with ocean tankers full of oil. Too much visibility.
I don’t understand price caps:
Putin: the price is $80 per barrel
Euro weeny: We have decided to institute a price cap of $50/barrel. We want 10 million barrels.
Putin: Rikiight... Tell you what, I’ll just sell my oil at $85/barrel somewhere else. You get nothing.
Euro weenie: But, but... you can’t do that! You must follow international conventions and sell to us at the price we define.
Putin: Suuure.. let’s chat next spring after winter is over. If you buy our Vodka you’ll feel warmer.
What am I missing here? How can the EU impose a price cap? I don’t see how it makes sense or how is it enforceable,
And, why would you think that would work? Russia isn't going to sell its oil to countries at some fixed price below market value. And, there are plenty of buyers at market price or at a bulk price Russia agrees to.
It's another worthless idea from the Biden regime.
Nope, he is spot on. Who is going to fix a tomato price in Milton’s example? Sellers?