Saturday, November 5, 2022

G7 Coalition Has Agreed To Set Fixed Price For Russian Oil

A vessel leaves the Orlan oil plattform at Sakhalin-1's off-shore rig at the Chaivo field, some 11 km (7 miles) off the east cost of Sakhalin island October 10, 2006. REUTERS/Sergei Karpukhin  

Reuters: EXCLUSIVE G7 coalition has agreed to set fixed price for Russian oil -sources 

WASHINGTON/LONDON (Reuters) - The Group of Seven rich nations and Australia have agreed to set a fixed price when they finalize a price cap on Russian oil later this month, rather than adopting a floating rate, sources said on Thursday.

U.S. officials and G7 countries have been in intense negotiations in recent weeks over the unprecedented plan to put a price cap on sea-borne oil shipments, which is scheduled to take effect on Dec. 5 - to ensure EU and U.S. sanctions aimed at limiting Moscow's ability to fund its invasion of Ukraine do not throttle the global oil market.  

Read more ....  

Update #1: The G7 Will Set A Fixed Price On Russian Oil -- OilPrice.com  

Update #2: Analysis-As Clock Ticks on G7's Russia Oil Price Cap, Big Questions Remain -- Reuters  

WNU Editor: Russia has made it very clear that they will not sell oil to countries that will enforce a price on Russian oil. What this means is that countries and companies will then be forced to buy oil from other markets, probably at inflated prices. The G-7 says that this will bring lower and stable prices to the markets. From what I see, and what everyone is experiencing at the pumps, is the exact opposite. The only way that Russian oil will be selling at a low price is if there is a global recession and oil demand will be at a low. In that case, everyone is losing.

2 comments:

Anonymous said...

You can set prices.

The Tokugawa Shogunate set social codes and prices. We saw how that ended. An innovative people became backward.

Nixon took the US off the gold standard. he had to. Anyone president at the time would have had to.

Fixing prices is to let the sand or other earth be swept away under the foundations unnoticed. when the foundations give way and they will give way, the economically beknighted and partisans are so shocked.

You can set prices, but only for a short while (or a short, short while).

That said Russia needs to be embargoed.do buy anything, don't beg for oil. Russia had an exercise where they disconnected from the internet. they have been planning this bullshit for a long time. Well, make Russia live it now. Disconnect from Russia.

Anonymous said...

Ahahahahaha! The US war on Europe continues! Get ready for MASSIVE price increases.