Andy Lipow of Lipow Oil Associates says a lot of the crude oil that Asia was buying — whether from the Middle East, South America or the United States — has been redirected back into Europe.
Russian oil has moved from Europe to Asia, says consultancy
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The EU believes that gravity doesn’t apply to it. Supply and Demand dictates commodity prices. Of course political environment also influence the movements of prices.
The EU demanded a cap on oil prices, and Russia happens to be the lucky country with the stuff everybody wanted, it made the decision not to yield to EU, and is selling it to China, India and Turkey. While Russia is willing to offer a substantial discounts to spite the EU, the diminished supply did not do the EU much good either. It is paying substantially more for oil from other sources. People can be rather irrational.
The G7 thought it has Russia measured. But it does have three Trump cards, China, India and Turkey. This means Russia won’t be deprived of oil revenues, and the EU is paying substantially more. Entertaining stuff.
I mean gas prices are lower than they were pre-pandemic, we’re all getting subsidizes, write offs and the market is extremely competitive which is keeping prices down, that won’t change thanks to Iran now getting a piece of the pie w regards to China and thus adding to the over saturation and depreciation of gas and oil prices. Qatar, UAE and the Saudis market is now being encroached on by Russia and Iran which does nothing but make prices lower and more stable, Europe is already buying contracts with them for 2024 so… sorry my guy, I know you wish all that were actually true but its not, just like when the Russians claimed EuRoPe wiLL FrEeZe without Putin’s blood oil, didn’t happen, in fact prices dropped and governments gave nice subsidizes to help the middle and lower class. I’d much rather be making a billion dollars a day off my energy than making 200 million like Russia is making right now. Sucks for you.
No doubt
@Lo Duke 390 When you are desperate, you will find comfort in any way to sooth the nerves. While the LNG prices are indeed lower, I am not so sure about the oil prices though.
***The EU and the UK are banning the seaborne imports of crude oil from Russia on 5 December 2022, by far the biggest step to date to cut off the fossil fuel export revenue***
Yet they are now buying refined oil products from India…at a premium !!! Ironically, one of the staunch and vocal advocates of banning Russian oil is AMERICA. To put it in a nutshell for you, the EU/UK and America are violating their own sanctions, and guess what, paying more for it from India. Surely that is a logic only you can comprehend?
I bet you are not from the UK because right now, people without means are too scared to turn on the heating for the ridiculously high prices. I wonder where did the subsidy go, and does it actually do enough to bridge the gap for the lower and middle incomes? Have you been outside checking the long queues lining up for basic food stuff? They beg for food because much of their income went to electricity and gas.
I wouldn’t do song and dance about your governments. How long can they keep subsidizing heating and power? Where is the money come from? Borrowing? Sure. But wouldn’t you have to pay it back in higher taxes?
These supposed “ENERGY” analysts don’t know d!ck, they’re were claiming gas prices were gonna be close to 10.00 gallon, I just paid $2.64 a gallon, the U.S. dipped into our strategic reserves to stable the market and in fact have sold when it was high and are are filling up while its low, making a surplus of over 3 billion dollars. What they don’t want to talk about is the fact that with U.S. and Norway now being the top LNG producers and exporters cuts huge profits from Russia and makes the MARKET EVEN MORE COMPETITIVE. China, India and Turkey are getting 15.00 discounts per barrel while Russia now has to contend with Iran who is selling oil and gas to China. Such a short sided almost laughable analysis, that leaves the Saudis, Qatar, UAE contending for business which Europe is happy to give it. The market remains competitive regardless of OPECs attempts of cutting production as Russia has lost 50% off it’s market and India and China will only buy at steep discounts, forcing Russia to sell low and deflate the market even more. The U.S. is also a top producer in oil and gas, in addition to Canada and Brazil coming in for a large piece of the pie. Fact is, the market has to stay low because the consumption isn’t there and the competition is massive right now, thanks to Russia. But niice try tho 🥴😏🤣🤣🤣🤣
supplies actual INCREASE
China will take every drop of spare oil Russia has so they will do just fine.