And oil is a fungible product. While transportation certainly plays into the equation, the net result of Euro and US virtue-signaling Russia bans will be minimal, as those markets buy and consume Russian production, which obviously affects worldwide price.
The biggest effect will be that those transaction will no longer be in dollars. This could be a terrible result for the US. And it may be intentional by those running Biden.
#7. They will also buy Russian fertilizer to grow food, while our inflation skyrockets, supply shock and food production drops. Because Covid, climate change, and Ukraine, are worth making Americans go through a artificially created, government induced second Dust Bowl, that the rest of the word is trying to avoid.
As of 2020 BRICS is 34,6% of world’s GDP, whereas G7 is 31,4%.
Now the economy of BRICS is commodities, manufacturing and agriculture, whereas G7s economy is in debt-based financial markets.
Who has the upper hand in this setup?