Russia Tried To Sell Their Oil And Nobody Bought It

[babylonsister]

https://www.politicususa.com/2022/03/02/russia-tried-to-sell-their-oil-and-nobody-bought-it.html

Posted on Wed, Mar 2nd, 2022 by Jason Easley
Russia Tried To Sell Their Oil And Nobody Bought It

Russia tried for the third consecutive time to sell its oil, and even with a discount, nobody bought it.

Bloomberg Energy and Commodities columnist Javier Blas tweeted:

There are reports of Russian tankers arriving at ports and making deliveries, but those are deliveries of pre-invasion contracts that were already paid for before Putin’s war against Ukraine.

Russia has no buyers for 2-4 million barrels a day of oil:

UPDATED: Oil traders say that Russia does NOT have right now buyers for >2m b/d of its oil exports (crude and products), and that could increase to 4m b/d or even more soon due to **self-sanctioning** (Russia exports ~8m b/d of crude and products) #OOTT https://t.co/QQLIaMuHPn

— Javier Blas (@JavierBlas) March 2, 2022

Oil and natural gas are the Russian economy. If most of the world stops buying its oil, the Russian economy will completely collapse. The Russians have admitted that the sanctions are hurting them, but what is happening in the energy market isn’t government sanctions but free-market self-sanctioning.

Buyers are exercising their free-market power not to fund Putin’s war and the murder of Ukrainians.

It is difficult to see a scenario where the Russian energy sector collapses, and the country can keep the invasion of Ukraine going.

The clock is ticking, and with each passing moment that Ukraine can keep control of its country, the more difficult it becomes for Russia to avoid catastrophic economic damage from the invasion.

Putin never counted on the fact that most of the world would decide that they want no part of funding his war.

[Scrivener7]

1. We need a worldwide conservation push - to use less oil and gas - to make up

for the shortfall. It would serve many wonderful purposes.

If we stopped our addiction to oil and gas, it would kneecap ALL the people like Vlad who are involved in that worldwide, supra-national culture of oil and gas criminality. They would simply become powerless.

And we would stop killing our own selves with global warming.

[SheltieLover]

2. Good!

I couldn't agree more!

[Magoo48]

8. Absolutely

[Liberal In Texas]

3. People had better get used to higher gasoline prices and stop blaming President Biden

This bellyaching because it costs more to fuel up your gas guzzling pickup is ridiculous.

The real problem is the cost of transporting food and goods is going to get worse.

[MarineCombatEngineer]

4. ...

The real problem is the cost of transporting food and goods is going to get worse.

Very true, I'm already feeling the pinch at the fuel pumps.

Both of my trucks can carry 300 gallons of fuel, imagine the cost of fueling those up.

[gab13by13]

5. We are buying it, correct?

[W_HAMILTON]

13. Read the article.

[muriel_volestrangler]

6. From the Bloomberg article:

In the clearest sign yet that almost all buyers of Russian oil have left the market, the country's flagship crude was offered on Tuesday at a record discount of $18.60 a barrel under the Brent benchmark. Even at that exceptional discount, several times larger than the usual couple of bucks difference, there were not a single bid for the barrels.

*The biggest obstacle to trading Russian oil is shipping. Sovcomflot, the state-controlled Russian company — the world’s biggest owner of medium-sized tankers, called Aframaxes — is being largely shunned. Other key tanker companies and managers, including Maersk Tankers and Torm, have announced they are, for now, not taking on new Russian oil shipping contracts. When a tanker from an adventurous owner comes available, it costs as much as 300% more than it did only a few days ago, making the trade prohibitively expensive. Beyond shipping, many banks are also refusing to deal in Russian oil, even if Europe and the U.S. gave general licenses on their sanctions to allow energy payments.

https://www.bloomberg.com/opinion/articles/2022-03-01/six-things-you-need-to-know-about-the-russian-oil-shock?sref=jB0kY0cG

This is encouraging. It may indicate that a price rise from a formal ban on trading in Russian oil is already largely 'priced in'.

[hatrack]

7. Awesome - this is probably the single most damaging thing that could affect Lil' Hitler . . .

Though I can't help wondering if shipping access and costs are driving this, rather than any moral qualms about Russia's actions.

[ProfessorGAC]

9. Oil & Gas Are 30% Of Their GDP

And they are more than 70% of total exports.
Not selling oil is economically crushing.

[Hekate]

10. Awhile ago Biden said that all Russia is is a gas station. Now we see why.

Astonishing turn of events.

[cbabe]

12. McCain said it and backed Ukraine years ago.

"I'd be giving them some weapons with which to defend themselves," said McCain, referring to the interim Ukrainian government's military.

He also cited "other measures" such as "giving them money that they need to get their economy back on track," and allowing Ukraine to join the European Union, a decision that is not up to the United States.

McCain: All Putin's 'got is gas and oil'

Politicalticker.blogs.cnn.com
April 22, 2014

[GoCubsGo]

11. I guess that includes the Chinese, which is saying something.

The Chinese get a substantial part of their energy from Russia. When even they're not buying from you, you know you've screwed up.

[mitch96]

14. That's my worry. Russia and China are both on the same land mass and the oil can be shipped

over land. China says no but what is really happening? At the last putin/xi meeting they discussed mutual trade and I bet oil/gas and wheat was on the table...
m

[GoCubsGo]

15. I think China is reading the room.

Russia has become a pariah state, and at the moment, dealing with them will look terrible for China. They're going to try keep the stain off themselves as long as possible. They're not ready to cut off ties, though, as they're going they still need Russia's resources. Kind of like walking a tightrope...

[keithbvadu2]

16. Oil has the weird ability to change national origin once it gets out to sea.

[Slammer]

17. London Stock Exchange

On the London stock exchange yesterday, Russian oil was being offered at a $18 per barrel discount and was having trouble finding takers.

Russian natural-gas giant Gazprom, oil-producer Lukoil and leading bank Sberbank are all penny stocks based on their trading on the London Stock Exchange, as the local market was shut for a third day.

Sberbank SBER, -78.43%, which had assets of over $500 billion at the end of 2021, was trading for 3 cents a share in afternoon action.

Lukoil LKOD, -93.23%, Gazprom OGZD, -23.50%, and Rosneft Oil ROSN, -77.71% continued to collapse as the dollar-denominated secondary listings in London remained the one venue where Russia’s top companies could be valued.

The collapse of the energy giants came even as Western sanctions specifically exempted the Russian energy sector.

https://www.marketwatch.com/story/gazprom-lukoil-and-sberbank-are-now-penny-stocks-as-russian-companies-collapse-in-london-11646227312



Shell announced they were divesting of Gazprom assets and ending all joint ventures. British Petroleum (BP) announced the same thing a couple of days ago for Rosneft Oil.

Exxon is doing the same. Part of their investments were with Rosneft but I don't have a clear picture of their investments in Russian oil companies.

Equinor (essentially Norway's national oil company) announced they were divesting and ending joint ventures with Russian oil companies. They're one of the biggest foreign investors in the Russian energy sector.

[JasonMain]

18. Buy electric.

[SoonerPride]

19. Maybe Putin can drink it.

[Texaswitchy]

20. To full of himself.

Stay away from windows.