Russia invaded Ukraine in February, America’s energy policy has pursued two grand, seemingly contradictory aims. The first is to keep global oil supply high enough that prices remain tolerable and public support for sanctions stays strong. The second is to asphyxiate Vladimir Putin’s war machine by stemming the flow of dollars Russia earns by flogging oil barrels.
In an optimistic scenario the package of sanctions could manage to reconcile the West’s two contradictory aims. The embargo would ensure Europe no longer fuels Mr Putin’s war: last month the bloc still bought 2.4m b/d of crude and refined products from Russia. Meanwhile the price cap, says an official within America’s Treasury department, would act as a “release valve”, keeping the global market in balance by letting developing countries buy Russian oil at a discount.
Start with the tankers. Cyprus, Greece and Malta loom so large in shipping that Europe’s ban on the provision of maritime services to countries that do not sign up to the cap—and many of them, loth to endorse American interference in commodity markets, have signalled they won’t—could create a big shortage of ships capable of carrying Russian crude.
US is fleecing its 'ally' Europe by exporting its natural gas at the soared price - with one single shipment might bring in $200 million
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Mustn't interfere with the sacred wise all knowing markets.
Just how will Number 10 continue to spin away the fact that the EU is the de facto largest, most successful Trading Bloc in history? Then there’s Germany being the largest Exporter on the planet too of course, Third Country Britain no longer on its Top Ten Trading list, Hooray!
Who will be the winner here?
This war should just end.
Never before have so few done so much damage to so many - and continue to do so ….
maybe energy markets should stop relying on oil
The photo of Gary, Indiana was a nice touch.
The price of Russian oil is between Russia & the customer buying that oil. No one else gets a say.
Incoherent.
Pure insanity, maybe if they stop cutting off their nose to spite their Putin they'll divert becoming third world countries