Check out what they (Biden Admin) is doing to the Strategic Petroleum Reserve:
Some of that is literally being shipped to China, which is filling their reserves at an unusually rapid rate, despite unfavorable current prices.
Posted on 07/08/2022 10:11:14 AM PDT by BeauBo
U.S. Treasury Secretary Janet Yellen is set to head to Asia next week. One of the topics she will be promoting is a potential cap on Russian oil prices. The Russian oil price cap was one of the main items on the G7 agenda during last month’s meeting of the world’s biggest economies...
Yellen will participate in the G20 meeting of finance ministers in Indonesia and also travel to Tokyo and Seoul to make a case for an oil price cap. China is not on her itinerary...
The Prime Minister of Japan, Fumio Kishida, suggested earlier this month that the cap should be placed at half the current price for Russian crude. Russian oil already sells at an often steep discount to alternatives, and a further cut in half would put the price close to the level Russia uses for its federal budget.
Analysts, however, argue that the price cap weapon is unlikely to work because of challenges in securing enough support for it from both consumers of oil and producers. Also, the implementation of the measure appears to be quite complicated.
The scenario that seems to be under discussion is to tie prices to insurance coverage as almost all global maritime insurance is concentrated in a handful of Western companies.
There is also the question of how Russia responds to a price cap. “Do we really think that Russia will actually accept this and not retaliate? I think this sounds like a very, very good theoretical concept but it is just not going to work in practice,” Energy Aspects’ Amrita Sen told CNBC earlier this week.
(Excerpt) Read more at oilprice.com ...
I thought she decided to go take an economics class? 🤪
Sanctions failed, confirmed.
Speaking of oil prices, I’ve noticed that gas prices are down in my area this morning. The average has been holding steady at $5.39, but I was getting my gas at Costco for $5.05. This morning, however, I paid $4.79 at Costco. I don’t know if it’s a trend, but I’ll take it.
Russian Foreign Minister Sergei Lavrov left early from the G20 meeting, after meetings he attended were boycotted by the G-7 Countries.
The diplomatic isolation of Russia over its invasion of the Ukraine, continues.
Economic sanctions seem likely to continue piling on, as soon as folks in the West (and now the East) can dream them up.
Its another stupid and unworkable scheme, in which Biden will end up with egg on his face, and the USA will appear to be a micro-managing interventionist bully.
Uh, no. They’re not stupid like our leadership is.
Central planning: it’s not just for your own country anymore.
I’m sure the Chinese would be happy to see their entire industrial structure grind to a halt in order to please the idiots in Washington DC who put us into this vulnerable position through adherence to a green kindergarten fantasy. The only question I’d be asking in their place is the same one I’m asking here: how could people this stupid ever take control of the government of the United States?
Drill baby drill would solve the problem.
Oh wait, Permian Basin, no off limits.
Gulf leases, no off limits.
ANWAR leases, off limits.
Pacific drilling? Forget it.
I could go on about rules and regulations, but I’d bore everyone.
This is all purposeful.
5.56mm
No.
Her??? lolololol.....she’s in a close race with the two dumbarses at the top....sheesh!!!
Doubtful.
Send out the simpletons.
“I’ve noticed that gas prices are down in my area this morning.”
Over about the last month, Crude Oil prices have dropped 20% from their peak after the Russian invasion of the Ukraine - officially cracking into Bear Market territory.
They dropped on projections of economic slowdown/recession (and high prices) reducing demand, but are bouncing back a bit of that drop today, on continued tightness in supply.
It is a big job to increase production elsewhere enough to replace Russian supplies. The supply side is probably going to be tight during that transition (a couple of years or more) - unless there is a recession, which there seems likely to be.
We are now running near full capacity for our (US) refineries to produce gasoline (peak driving season), so any disruptions in refining could send gas prices back up at the pump. But overall oil prices seem to stabilized from the initial shock of the invasion of the Ukraine. Standing by for the next shock...
The Asians will laugh at that ignorant, stupid and inept woman.
They’ll use her like a rented mule.
Price Caps accomplish only one thing: market shortages of the product capped.
Check out what they (Biden Admin) is doing to the Strategic Petroleum Reserve:
Some of that is literally being shipped to China, which is filling their reserves at an unusually rapid rate, despite unfavorable current prices.
Asia to Russia: The Americans have told us to cap your oil price to 1/2 of what you are charging.
Russia to Asia: Fine. We won’t send unless you pay full price.
Asia: um...oh.
The emptying of the Strategic Petroleum Reserve is projected to continue at this breakneck speed (a million barrels per day) until October.
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