Posted on 12/03/2022 10:41:52 AM PST by Mariner
YIV, Ukraine (AP) — Russian authorities rejected a price cap on the country's oil set by Ukraine’s Western supporters and threatened Saturday to stop supplying the nations that endorsed it.
Australia, Britain, Canada, Japan, the United States and the 27-nation European Union agreed Friday to cap what they would pay for Russian oil at $60-per-barrel. The limit is set to take effect Monday, along with an EU embargo on Russian oil shipped by sea.
Kremlin spokesman Dmitry Peskov said Russia needed to analyze the situation before deciding on a specific response but that it would not accept the price ceiling. Russia's permanent representative to international organizations in Vienna, Mikhail Ulyanov, warned that the cap's European backers would come to rue their decision.
“From this year, Europe will live without Russian oil," Ulyanov tweeted. "Moscow has already made it clear that it will not supply oil to those countries that support anti-market price caps. Wait, very soon the EU will accuse Russia of using oil as a weapon.”
(Excerpt) Read more at yahoo.com ...
‘EU bad moves, oil price cap. Russia big moves, gas union’
https://www.youtube.com/watch?v=9abYGrFjzBo
Europeans citizens having to “pay the true price” is a feature, not a bug.
I don’t argue that.
“Looks like oil is going for about $80-$85/bbl.”
I read that Russia is currently selling oil at a discounted $58/barrel to India, China and others. Russia has to move its oil, or it puts pressure and stress on the oil infrastructure of pipes and valves..
See how Russia flares off $10 million gas each day near the Nord Stream pumping station? This gas flaring is visible from Finland. This is to relive pressure on its gas infrastructure. Russia just can’t keep it in the ground for another day or year.
China may be taking a lot, but Japan is taking all it can get.
As is South Korea.
These stupid NATO MOFOs have no forethought what-so-ever.
If I were China, I would cozy up to the pacific rim nations and quit with the bully act. Then force the USA to hell out of the region altogether.
They wont do that though. Its not in their blood to do it.
“Putin may be counting on a populist uprising in Europe that will end their support for the Ukraine proxy war with Russia.”
That is already happening in Europe in the form of protests..at this time.
In areas of the continent the locals are getting sick and tired of supporting the Ukrainians who are running from the war and settling in western Europe.
So one way or another, this is going to come to a head, especially when the Europeans will have to support the Ukrainians heat and food while they are “guests” within those euro nations.
I remember back in the early 1970’s, the US refused to buy chrome from either South Africa or Rhodesia. So that country sold it to the USSR and the USSR sold it to us.
There is a world market for oil if Europe refuses to buy oil from Russia, it will sell it to India, China etc.
I think they had another year to wind it down. This way it happens more quickly.
Crude oil $140 in 2023
That‘s why:
1) Russia used to sell oil to EU at $67 a barrel
2) EU imposes price Cap on Russian oil at $60 a barrel
3) Russia stops selling oil to EU with immediate effect
4) EU now needs to buy oil elsewhere at $100 or higher a barrel
5) OPEC+ cut oil output to “digest” the shock and stabilize the supply
6) India & China now buy Russian oil at $100 a barrel and sell it to EU at $125 a barrel
7) Meanwhile, the Fed pauses at raising rates triggering rally in commodities: Gold & Oil start rising
8) Biden administration after depleting U.S. emergency strategic oil reserves starts panicking & suggests removing Venezuela or Iran sanctions
9) Somewhere next month, EU admits its mistake and increases the price Cap on Russian oil to $70 a barrel
10) Crude oil jumps to $140
https://t.me/tradingrumors/23854
You don’t really think this will hurt Russia? 😂😂😂😂
Paying the price for destroying Russia’s economy is much cheaper than having to fight the invading Russian military and having the infrastructure of your country wrecked.
Price controls ALWAYS lead to shortages. This is a lesson of history that statists refuse to learn.
“There is a world market for oil if Europe refuses to buy oil from Russia, it will sell it to India, China etc.”
Well our idiot neocons thought they could bully China, India, India and a few other major countries to honor the boycott against Russia but were told to F_ off. They also thought they could collapse the Russian economy by seizing all their assets and hoping some rival political entity within the Kremlin would then depose Putin. They have been WRONG about EVERYTHING once again, and the cost of this Ukraine adventure will be in the TRILLIONS!
How can anybody in their right mind support this unnecessary war, one that Trump would have avoided if the election wasn’t stolen from him? Actually I’ve always suspected that this was the primary reason the deep state wanted Trump gone, because he refused to go along with this plan of purposely inciting Russia into war.
6) India & China now buy Russian oil at $100 a barrel and sell it to EU at $125 a barrel
I’m sure Russia will fill the insurance gap in some way, this is an inconveniece to them, nothing more.
I have put a price cap of 20,000 on brand new F-150 pickups. I am still waiting for delivery. I’ll let you guys know when it gets delivered.
“Oil can mostly be transported to Asia only by ships. European-owned ships will be banned from transporting Russian oil the price of which exceeds the cap and European insurance companies will be banned from insuring such transports.”
Chinese, Russia and Indian flagged ships (and their commercial partners) have plenty of ships to move the oil.
This move harms EU/US shipping as well as severe disruption to the oil/energy markets.
“Paying the price for destroying Russia’s economy is much cheaper than having to fight the invading Russian military and having the infrastructure of your country wrecked.”
Not an issue for the US.
And the countries in Europe will fold at the first sign of general strike and/or widespread riots.
Chinese, Russia and Indian flagged ships (and their commercial partners) have plenty of ships to move the oil.
Not an issue for the US.
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.