Posted on 12/01/2022 6:03:34 PM PST by Mariner
Upcoming sanctions on Russian oil are set to be “really disruptive” for energy markets if European nations fail to set a cap on prices, analysts warned.
The 27 countries of the European Union agreed in June to ban the purchase of Russian crude oil from Dec. 5. In practical terms, the EU — together with the United States, Japan, Canada and the U.K. — want to drastically cut Russia’s oil revenues in a bid to drain the Kremlin’s war chest following its invasion of Ukraine.
However, concerns that a complete ban would send crude prices soaring led the G-7 to consider setting a cap on the amount it will pay for Russian oil.
An outright ban on Russian imports could be “really disruptive” to markets, according to Henning Gloystein, director of energy, climate and resources at political risk consultancy Eurasia Group.
The potential for rising oil prices is “why there’s pressure from the U.S.” to agree on a cap, Gloystein told CNBC on Wednesday.
A price limit would see G-7 nations buy Russian oil at a lower price, in an effort to reduce Russia’s oil income without raising crude prices across the globe.
(Excerpt) Read more at cnbc.com ...
Then, everyone would agree on a price cap.
The reality will be the feckless west will change nothing and keep buying Russia oil at market rate. They'd be buying Russian gas too if the US had not bombed the pipelines.
And Russia keeps saying they will not sell oil to any country participating in a price cap.
My prediction is that Russian oil profits will increase.
Sheer insanity. As if the buyers / beggars can tell the seller the price he must sell out.
I’m going to try that the next time I get gas.
“You can only sell me your gasoline at under $2 a gallon.”
$100 says the USA will still be buying russkie oil on Dec. 6 just like the USA is buying russkie oil today. Same with the EU’s.
Any bets?
Capping prices always causes shortages, which leads to much higher prices.
How the heck is a price cap going to be enforced short of physical force?
Should work fine …. for the Russians
I read they sell it third party. We have done nothing to hurt Russia and ruined our own economy.
there won’t be any disruption
Russian oil imports to Europe have already been on the decline, in anticipation of this
alternative supplies have already been secured
Plus Putin said no oil for price cap backers.
Sounds like EU socialism.
European Socialist Union.
ESU.
And what about the west talking about “sovereignty”?
“alternative supplies have already been secured”
The world has found 11 million barrels a day, laying around unused?
All the Arabs have declined to increase production.
Your assertion is ludicrous.
“ there won’t be any disruption
Russian oil imports to Europe have already been on the decline, in anticipation of this
alternative supplies have already been secured”
**************************************************
Enquiring minds want to know:
1. From what supplier(s) will they be buying these “alternative supplies”?
2. To what customers do the prospective new supplier CURRENTLY sell petroleum and at what current price?
3. What new price will the prospective new supplier(s) charge to abandon their current customers?
4. From where will the newly abandoned customers buy the petroleum they will continue to need. And at WHAT PRICE?
And P. S. … I take it you’re not currently successful in business,
OPEC is notorious for overproducing
they just can’t resist the extra money
Old paradigm: OPEC is notorious for overproducing
New paradigm: OPEC is underproducing its quota.
greed hasn’t changed, that’s an enduring trait of the OPEC countries
and OPEC cheating is almost impossible to detect ... so there will be more cheating
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