Zero Hedge: In "Victory" For Moscow, Russia Defies Sanctions By Selling Oil Above Western Price Cap
Two weeks ago we reported that with a barrel of Urals about to rise above $60, the "Russian oil price at key port was about to breach sanctions cap", which - if the sanctions were strenuously enforced - meant that there would be a sharp drop in supply.
Fast forward to today when, as the WSJ reported, the price of Russia's most coveted crude finally traded above the western price cap imposed to starve Moscow of funds for the war in Ukraine (but not really, because starving the world of Russian oil has long been viewed as a far more dangerous outcome), resulting in a very distinct "victory" for Moscow in the "fight for influence over global oil markets."
It is the first time that the price for its flagship Urals grade of oil has breached the $60-a-barrel limit since the U.S. and its allies introduced the novel sanctions policy last December, according to commodities-data firm Argus Media, and - as the WSJ clarifies - it is a sign that the Kremlin has succeeded, at least in part, in adjusting to the restrictions.
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WNU Editor: There is an expectation that both China and India will be consuming an extra 2-3 million barrels of oil by the end of this year. That alone is going to raise the price of oil significantly, and it will provide more opportunities for Russia to sell its oil at a price significantly above the price cap of $60/barrel.
And while Russian oil exports by sea continue to decrease .... Russian Crude Oil Exports Continue To Plunge (OilPrice.com), oil shipments by pipeline to customers like China are booming .... China hugely boosts crude stockpiling on cheap Russian oil: Russell (Reuters).
Update: The EU wants to keep on doubling down on stupid .... The EU Has No Plans To Revise Its Russian Oil Price Cap (OilPrice.com).
The circle firing squad at work, again.
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