Silly dork hopes that if he repeats his drivel often enough, it will become sensible.
It doesn't.
Some oil companies grumble at the idea...
- Thread starter JohnD
- Start date
Silly dork hopes that if he repeats his drivel often enough, it will become sensible.
It doesn't.
Fine but that doesn't mean that prices will fall in fact they may even finish up higher to maintain profit levels. The current OPEC attitude is pretty simple. Oil prices falling now. They don't want to be dragged into our recession so cut supply to maintain their prices, They have been in this situation before, We will see any effect from cutting 2m barrels a day shortly but there is pressure on them to keep prices down which would mean higher production levels.
Russian oil. It's selling so not entirely shut off. Remember the response in the UK when dockers refused unload a tanker. We may still be buying some. There is talk about a method of putting a cap on the price of Russian oil. The idea is to reduce their profits but clearly not to shut it off. Tankers need insurance and only a few companies provide that. The idea is to only provide insurance if the oil is sold at the cap price. Many moans about how easy it would be to get around it - make an unofficial payment as well etc. If it worked what price to set on the cap. If less than what the rest of OPEC want what would they do?
A fairly recent report on diesel as a for instance
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Europe needs China's diesel if it does cut off Russia imports
If Europe is serious about ending all imports of Russian crude oil and refined fuels by early next year, the key to success lies in Asia, and more specifically China.
www.reuters.com
