Posted on 03/26/2022 11:36:08 AM PDT by RomanSoldier19
Russia is the world's third-largest oil producer, but santions have dented demand for its products. As a result, Russian oil is trading extremely cheaply, making it more competitive as global oil prices surge. Price-sensitive buyers from China and India are buying cheap Russian oil. Sweeping sanctions against Russia have hit the country's oil exports, sending prices down so much that some buyers from China and India are enticed to snap up some cargoes.
Russia is the world's third-largest producer oil producer, but the country has fallen out of favor with buyers and investors after its invasion of Ukraine. The US and the UK have banned Russian imports, but neither country is a large buyer of Russian energy products. The European Union, which relies on Russia for 40% of its natural gas and about 30% of its oil, is considering a ban as well. Meanwhile, energy companies, from producer BP to oil services firm Schlumberger, are retreating from the Russian market.
As a result, even though Brent crude oil futures have soared, Russia's flagship Urals oil is trading at a record discount to dated Brent, according to S&P Global Commodity Insights.
On Wednesday, S&P Global Platts assesed Urals at the price of dated Brent — the benchmark price of physical cargoes of North Sea crude oil — at a record discount of around $31 a barrel. That's about three times the discount of $11 a barrel on February 24 — the day Russia invaded Ukraine — according to S&P.
Meanwhile, dated Brent has been rising, hitting $126.50 a barrel on Wednesday, up about 20% from $106.52 a barrel on February 24, according to S&P. Global oil prices have surged to 14-year highs this month, driven by concern about a shortfall in supply as a result of the war in Ukraine war.
(Excerpt) Read more at msn.com ...
So, Russia is getting about $90 a barrel?
They are raking it in like crazy.
Well, at least we’re suffering for it.
“Well, at least we’re suffering for it.”
You aint seen nothing yet.
Yup—check out the crude oil chart for the past year:
https://finance.yahoo.com/quote/CL=F?p=CL=F&.tsrc=fin-srch
The Russians are laughing all the way to the bank.
1) Russia is about 13% of global supply.
2) Not all oil is created equal. US oil is mostly shale now. “Light tight oil”. That means gasoline. It’s low in diesel content. Urals is API 30 and that means rich in diesel content.
3) So 13% of oil supply but more like 30% of diesel-rich oil.
4) There is zero reason for Russia to concern itself with “price” established on an allegedly free trading venue that exists in an enemy country. They can price their product however they please. In rubles, btw.
5) This exercise by Biden is well on its way to exposing $30T in debt and FX currency trading ALSO largely at venues residing in enemy countries.
6) Russia will declare the price in rubles. They will also declare the ruble to dollar conversion, ruble to Euro conversion and Euro to British pound conversion. Diesel hauls food to grocery stores. Pay their price or die.
Did the Russians open up their banks yet?
Is the stock market back up, now?
I’m surprised at the mental gymnastics people are going through to make this out to be a good thing. What’s best for ANY oil producer is stability. If this was “BETTER” for Russia, they would have been doing it all along. If folks are saying that this seriously lessens the impact the sanctions have on Russia, I get that, but some people that act like Russia is coming out ahead on this. That’s insane when you factor in all the other economic collateral they’re dealing with.
They should let the free market decide. Let russia sell its gas in America and the consumer can choose which stations to fill up their tanks.
Cheap or inexpensive?
And Winken Blinken and Nod stated we would continue to buy Russian oil.
Is that not true now?
Russia is also making a fortune on the export of very expensive fertilizer to very willing buyers who can afford it. Many farmers cannot. So far the sanctions have disrupted Russian banking and domestic marketing of many goods but the sanctions are hurting the US, EU and the world’s poor who will suffer the most in the coming famine.
It should be noted that the green lunatics have power in the US and the EU. They are dismantling the fossil fuel industry. Natural gas, the core ingredient of fertilizer is now scarce and expensive. The lunatic greens are responsible for the food shortages, famines and wars that will follow. Notice that Russia, China and India have played lip service but have not indulged in green lunacy. History will record that the 2020 stolen election in the US, will result not only in a lower standard of living for Americans, but starvation for hundreds of millions around the world..
On February 1 before sanctions, Biden had driven Putin’s net per barrel to $88. He was rolling in petrodollars at $88. He’s been selling to his BRICS partners at market minus 20%. The sanctions have no effect when oil is selling at $110, anything over is gravy for Putin. Of course, chumps like you and me are paying for the madness as we hemorrhage at the gas pump.
Their bank is deep underground near the Caspian Sea and Tyumen Oblast, as well as Sakhalin. Those banks have very low employee cost and they are never robbed. Nor does the Federal Reserve control their interest rates.
That is civilization’s lifeblood. Not pieces of paper with ink printed on it. And there is nothing anyone can do about this.
Way to go, Globalism!
Economics?
That’s measured in pieces of paper with ink printed on it.
Actual value is joules. Joules are not decided by counterparty attitudes. They are determined by physics.
Russia is not coming out ahead. They were always ahead. They produce joules. They don’t care too much about bytes advertising other bytes of movies.
According to this contorted article.
The bottom line being Russia is still selling at the highest prices they've had for years, at prices far higher than before the war. And India and China with nearly 3 billion humans can buy every barrel of oil Russia produces at very good prices.
Win win win for Russia India and China.
It’s even worse than you describe.
Russia’s oil is diesel rich. Shale oil is diesel poor.
Gasoline carries you to the grocery store, but diesel carries food to the grocery store.
This isn’t about money. Money is pieces of paper created whimsically during QE by the Federal Reserve.
It’s about calories. Not just the fertilizer issue. The diesel issue. No diesel? Trucks stop. Food on them spoils. Cities starve.
Maybe that’s a good thing. They are blue voters.
The US produces more oil than Russia, it’s just that we are a productive country that uses the energy, unlike Russia.
Oil won’t be this high forever and the Euros are already weening themselves off of Russia oil. Germany just announced it has already cut Russian oil by 15% and they plan to import zero Russian energy by end of 2024.
The Germans are paying a heavy price:
War in Ukraine causes German business morale to collapse-(Recession)
Reuteurs via Yahoo ^ | 3/26/2022
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