Russian oil price cap

[TSOL]

The western nations, Europe, cannot be buying Russian oil and funding their authoritarian government, and funding their war effort. But I do think that this price cap is going to wreck havoc with the world economy.

 

This isn't about democrats vs republicans, this has to be done. But battle lines have been drawn. Russia will still be able to sell their oil to China, and India, two huge markets and may not even miss a beat in terms of their revenue. 

 

It's also going to cause massive complications on a geo political scale, it's going to do as much damage to the free world as it does to Russia. 

 

Have the G7 nations though this through? What can we expect from the global energy economy as this price cap sets in? Battle lines have been drawn and this is going to exasperate  an already strained world economy. 

 

This deserves its own thread. 

[Tiberius]

It allows Russian oil to be shipped to third-party countries using G7 and EU tankers, insurance companies and credit institutions, only if the cargo is bought at or below the price cap.

s the world's key shipping and insurance firms are based in G7 countries, the cap could make it difficult for Moscow to sell its oil for a higher price.

Russia, which is the world's second-largest oil exporter, said on Sunday it would not accept the cap and would not sell oil that is subject to it, even if it has to cut production.

 

Still, with the price cap set at $60 per barrel, not much below the $67 level where it closed on Friday , the EU and G7 countries expect Russia will still have an incentive to continue selling oil at that price, while accepting smaller profits.

China's foreign ministry said on Monday that Beijing would continue its energy cooperation with Russia on the basis of respect and mutual benefit, following the EU's agreement of the price cap, Russia’s RIA news agency reported.

 

https://www.reuters.com/business/energy/g7-price-cap-russian-oil-kicks-russia-will-only-sell-market-price-2022-12-05/

[TSOL]

16 minutes ago, Tiberius said:

It allows Russian oil to be shipped to third-party countries using G7 and EU tankers, insurance companies and credit institutions, only if the cargo is bought at or below the price cap.

s the world's key shipping and insurance firms are based in G7 countries, the cap could make it difficult for Moscow to sell its oil for a higher price.

Russia, which is the world's second-largest oil exporter, said on Sunday it would not accept the cap and would not sell oil that is subject to it, even if it has to cut production.

 

Still, with the price cap set at $60 per barrel, not much below the $67 level where it closed on Friday , the EU and G7 countries expect Russia will still have an incentive to continue selling oil at that price, while accepting smaller profits.

China's foreign ministry said on Monday that Beijing would continue its energy cooperation with Russia on the basis of respect and mutual benefit, following the EU's agreement of the price cap, Russia’s RIA news agency reported.

 

https://www.reuters.com/business/energy/g7-price-cap-russian-oil-kicks-russia-will-only-sell-market-price-2022-12-05/

 

 

My biggest concern is that we are seeing energy being weaponized by both sides now and what is that going to do to us consumers.

 

There is a log jam of tankers as we speak off the coast of turkey, the new sanctions are going to increase the price of energy exponentially for Europe, and the US.

[Tiberius]

16 minutes ago, TSOL said:

 

 

My biggest concern is that we are seeing energy being weaponized by both sides now and what is that going to do to us consumers.

 

There is a log jam of tankers as we speak off the coast of turkey, the new sanctions are going to increase the price of energy exponentially for Europe, and the US.

That remains to be seen. Hopefully Putin is harmed very badly and we see little or no increase in price here

[All_Pro_Bills]

27 minutes ago, Tiberius said:

That remains to be seen. Hopefully Putin is harmed very badly and we see little or no increase in price here

China, the party that will take most of the Russian oil production, wins again.  The will get oil for consumption at a discount and sell the rest at market rates.  They've done this previously with LNG purchases shipped to Europe.    

Edited December 6, 2022 by All_Pro_Bills

[TSOL]

39 minutes ago, All_Pro_Bills said:

China, the party that will take most of the Russian oil production, wins again.  The will get oil for consumption at a discount and sell the rest at market rates.  They've done this previously with LNG purchases shipped to Europe.    

 

 

This is turning into an energy war which was probably Russia's strategy all along. 

[T master]

2 hours ago, TSOL said:

The western nations, Europe, cannot be buying Russian oil and funding their authoritarian government, and funding their war effort. But I do think that this price cap is going to wreck havoc with the world economy.

 

This isn't about democrats vs republicans, this has to be done. But battle lines have been drawn. Russia will still be able to sell their oil to China, and India, two huge markets and may not even miss a beat in terms of their revenue. 

 

It's also going to cause massive complications on a geo political scale, it's going to do as much damage to the free world as it does to Russia. 

 

Have the G7 nations though this through? What can we expect from the global energy economy as this price cap sets in? Battle lines have been drawn and this is going to exasperate  an already strained world economy. 

 

This deserves its own thread. 

 

It's just following the agenda make the price of fossil fuels go up don't reopen the off shore & domestic drilling here to off set the damage done to the US energy independents & promote electric even more per this administrations plan they love it when a plan comes together .

 

Then the only people hurt is all the rest of us . G7 is happy, Biden is happy, the Dems are ecstatic, & all is good in F ing up the economy of the rest of the free world UNLESS of course Biden goes groveling to the like of Venezuela or other one time enemy's of the US to plead for more oil which they will screw us to .

 

BUT what ever you do don't go back to what ever was working like asking Canada or closest allie to produce more oil Or hay a pipe line to get more oil to the US to avoid this type of BS that would be a common sense move & WAY TO EASY !

 

But as the old saying goes & fits this POTUS "if your gonna be dumb you got to be tough" !! 

 

I do agree that we need not fund this mad mans war but one action can cause many reactions & the way this administration plans things to this point has been less than good to say the least .

Edited December 6, 2022 by T master

[All_Pro_Bills]

1 hour ago, TSOL said:

 

 

This is turning into an energy war which was probably Russia's strategy all along. 

If its an energy war we must ask where does Saudi Arabia stand and OPEC+in the conflict?  As leader of OPEC+, the kingdom is hosting a delegation from China, notably lead by President Xi, where they'll attend a 3 day meeting starting tomorrow with Saudi leadership and representatives from other oil producing countries in the Gulf region. 

 

Everybody can wave the flag of democracy until their arms fall off but my view is while the US and its NATO allies are distracted by Russia in Ukraine and dumping vast amounts of resources into the conflict while destroying the economies of Europe in some collective suicide pact, China is purposefully and methodically pursuing mutually beneficial relationships elsewhere and stepping into the leadership role abandoned by the current US administration.  And in the process securing key economic resources and inputs like energy into the future.  While the Americans send lots of trade their way buying solar panels from Chinese firms!     

Edited December 6, 2022 by All_Pro_Bills