Posted on 12/03/2022 7:10:11 AM PST by Oldeconomybuyer
(Reuters) -Russia "will not accept" a price cap on its oil and is analysing how to respond, the Kremlin said in comments reported on Saturday, in response to a deal by Western powers aimed at limiting a key source of funding for its war in Ukraine.
Kremlin spokesman Dmitry Peskov said Moscow had made preparations for Friday's price cap announcement by the Group of Seven nations, the European Union and Australia, the Russian state news agency TASS reported.
"We will not accept this cap," RIA news agency quoted him as saying. He added that Russia would conduct a rapid analysis of the agreement and respond after that, RIA reported.
Russia has repeatedly said it will not supply oil to countries that implement the cap - a stance reaffirmed by Mikhail Ulyanov, Moscow's ambassador to international organisations in Vienna, in posts on social media on Saturday.
"Starting from this year Europe will live without Russian oil," he said.
The G7 price cap will allow non-EU countries to continue importing seaborne Russian crude oil, but it will prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than $60. That could complicate the shipment of Russian crude priced above the cap, even to countries which are not part of the agreement.
(Excerpt) Read more at news.yahoo.com ...
The BIG PROBLEM with the price cap is that the Saudis and every other exporter knows they could be next.
Like it or not, the big oil exporting countries know they can bring the West TO ITS KNEES, if they so choose...and they may just give us a taste of it, due to this crap.
Sounds like “Eff you, stronger reply to follow”
Russia: “How about ‘NO!’l
Be assured, Russia will have no problems finding other customers who will not abide by the EU’s attempt to dictate prices on a commodity via their oil price cap.
Years ago, Rush Limbaugh repeatedly stated that the real reason for Iraq War I was to maintain the the free flow of oil worldwide at market prices.
A price cap does not meet that. Either we are at war and they are to be shunned, or we (EU/Asia) want their oil will pay them a fair value for it, a fair value being the market price.
who blames them? this nation has become a pathetic shadow of a once great power.
sleepy joe kowtowing to a French manchild, unable to negotiate a peace with a Euro-Asian power like Russia, but bending completely over for thugs like China and Iran.
our allies in Afghanistan left for dead, the women of that nation are now being beaten in stadium to the cheers of savages.
our borders are like sieves, God knows how many diseases and terrorists are being allowed in...
we are definitely under judgement because of our wickedness.
we need a spiritual awakening. Prayer and repentance are our only hope. Ask God to shake us out of slumber.
Russia sells enough oil to non western countries, they don’t need the west. Same with their food, fertilizer, grains, metals, commodities. The only thing this western oil price cap will do is drive up the price and create more shortages.
The West shoot’s itself in the foot , again and again.
https://oilprice.com/Energy/Energy-General/The-Problem-With-Oil-And-Gas-Price-Caps.html
“For others, such as U.S. oil industry vet and commentator David Blackmon, the cap was a joke - Russia is already selling its oil to China and India at prices in the proposed range, so the cap will not, in fact, cap anything at all.
Energy Intelligence’s OPEC correspondent Amena Bakr was also blunt. In a tweet thread on Wednesday, she said that “If you can’t deliver on something then don’t make false promises! The EU looking to cap oil at 65-70 is a joke. How will that price range hurt Russia’s war financing?” after which she called the proposed cap range toothless.
Yet Bakr also said that if this is the level the price “cap” is agreed at, it would be evidence that the EU has recognized the importance of energy security over geopolitics. Whether will be an agreement remains uncertain because differences appear to be quite significant.
Poland, for instance, would not agree to a cap above $30 per barrel, while Cyprus wants compensation for the shipping business it would lose because of the cap. Even before it is finalized, the Russian oil price cap is already being ridiculed.…”
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In fact, many financial greats have assured the Russian price cap will INCREASE the cost to the EU and West, part of the plan? Why is the West so intent on committing suicide? Thank Senile Joe, you are a total idiot, Vlad keeps checkmating you at every turn and you seem to not even notice.
Ok, then how about a fedora on oil prices then?
They are already in line.
Its not just Biden. Bigger. We are the ones who will suffer. How stupid can they be? I think their ultimate goal is to pull the EU off Russian oil before next year.
There is an underlying motive here. They know Russia will cut them off.
Forbes: Russian Oil Price Cap Could Be Biden’s Biggest Energy Folly Yet
By Dan Eberhart, CEO of Canary, LLC
There are two likely consequences of the price cap on Russian oil exports that G7 leaders agreed to in early September – and neither is good for the policy’s architects.
The idea behind the price cap is to expand the reach of sanctions on Russia to third countries, thereby limiting the windfall the Kremlin is receiving from higher oil prices while also lessening the impact on prices in sanctioning countries. But there are flaws in this thinking.
First, big buyers of Russian oil like China and India will likely ignore or evade the cap and keep providing vital funding for Russia’s war machine with their purchases.
Second, the price cap creates a considerable disruption to Russian oil supply that will send global prices skyrocketing, keeping Russian oil income buoyant while punishing the global economy.
[ ]
The worst-case scenario is full-blown Russian retaliation and the use of oil exports as a weapon, which could deliver a bullish shock to the market, pushing prices as high as $150 a barrel.
Such a scenario could increase Russia’s oil income by as much as 50 percent while exacerbating global recessionary pressures.
The risk of this market reaction cannot be overstated – especially since the Biden administration and EU and UK policymakers have proven themselves incompetent in the current energy crisis, and the price cap could be their coup de grace.
and the price cap could be their coup de grace.
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Thanks, I have no doubt as everything Biden supports or mandates results in harm to America.
I tried to buy a new toyota camry today but the dealer wouldn’t agree to my $10,000 price cap…..
I hate when that happens
What this means is, China and India will have the political leverage to get and maintain huge discounts. Russia is not going to end up selling at a loss, they will not make as much money as they want, and that's the goal.
Their State budget is predicated on US$70 a barrel. Nice short fall you got there, Mr. Orc.
“It is to make them sell it so low they can not profit from it”
Russia is already selling oil for right around the price cap and making a profit. Laughable machinations by Biden and Europe.
I have a business selling antiques. I set the price not the customer. These fools obviously flunked economics 101. In addition, if Russian oil was removed from the market which is doubtful, the price of non-sanctioned oil would be astronomical. Thus, we would take it in the ass.
These morons did get an A in economics 102. Economics 102 are studies on how to wreck your economy and the world’s economy. Howver, they forgot to read the last sentence in the book which states, “DO NOT DO ANY OF THIS.”
Russia will continue to sell its oil to countries like India who will sell it back to Europe at a higher price.
my post at 11
Also see number 17.
Someday freepers will finally understand that this is not about hurting Russia but destroying America.
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