As long as the war goes on, Oil/natural gas prices will remain high. Russia will continue to laugh all the way to the bank.
Volume keeps dropping, and price is volatile -
Volumes to India/China/Asia have skyrocket and will rise even higher in coming months/years.
What is the population of Europe as compared to the massive populations/power demands of China, India, Indonesia and the rest of Asia who are eagerly snapping up Russian Oil/natural gas at great prices, and totally ignore Dementia Joe's funny “sanctions”.
“ Volumes to India/China/Asia have skyrocket and will rise even higher in coming months/years.”
Russian oil volumes to China and India have both declined over the past four weeks. The peak in total Russian volume to them appears to have occurred back in May, when they offered discounts in excess of $30 per barrel, and could still get insurance to clear the ports. Purchases for new spot shipments going forward is now classified as a State secret in Russia, where they had previously been openly reported, like other countries.
Volumes to India and China are still reportedly up from last year, but still constitute only a small minority of Russia’s former tanker borne exports. Instead of a week to Rotterdam, those shipments take around two months, requiring ship to ship transfers en route.
Gas is a very different story.. Europe (including Turkey) accounted for about 85% of Russia’ natural gas exports last year. Delivering that product to market depends overwhelmingly on existing pipelines. Only a fraction can physically be diverted to terminal facilities that could liquify it for export. New pipelines to transport that existing production to Indian or Chinese markets would need to be constructed across several time zones, requiring a lot of capital investment and many years.
Most of the natural gas that formerly went to European markets will simply not be transportable to market.