Why are we not sanctioning Russian oil??

[jcgoldie]

Because we are afraid of the political implications of higher gasoline prices? If NATO is unwilling to secure airspace over Ukraine due to nuclear threats, we need to at least empty our economic toolbox and do anything possible to cripple Putin. Oil is where he gets his money. These are war crimes, watching democracy die in Ukraine without doing everything possible short of actually fighting a war is unacceptable for the United States.

[Walleye]

1. It looks like Russian oil is being shunned even without sanctions

And the United States cannot do this these things on our own. NATO consists of 30 countries. It’s actually amazing there is as much unity as there is. Just shows what a universally hated bad guy Putin is becoming

[WHITT]

7. But Crude Is Fungible

Countries friendly to Russia will still buy it, and we will buy the crude they would have bought but didn't. It's like pinching one end of a water balloon.

[Walleye]

8. True. Which is why I take exception one right wingers talk about "our oil"

[ProfessorGAC]

10. But, They're Not

Russia is sitting on 3 days supply, in ships or terminal tankage, that nobody has bought.
In the last 3 days, the only Russian oil delivered was from prior contracts.
It's currently over 10 million barrels, out of the ground, with no buyers.
They offer a discount of nearly $19 below the Brent benchmark yesterday. No takers.

[WHITT]

12. That's On The Open Market

Countries could be purchasing directly, perhaps at an even better discount. Then, as I mentioned, we and others who are not buying Russian oil, are buying the oil that the direct buyers would have bought but didn't.

Fungible 101.

[ProfessorGAC]

13. Did You Read My Post?

Three days of sales are sitting unused & unbought.
I don't think you understand fungibility the way you think you do.
If there is ample supply to meet demand, fungibility is irrelevant. The demand gets met at higher cost.
Fungible doesn't mean impervious.
Perhaps you should be considering this beyond the 2 dimensions in econ 101.

[WHITT]

15. Yep

Did you read mine?

Direct sales would not be showing up at what you're observing.

[orwell]

14. You are correct sir...

...Russian oil not even clearing at a historic discount.

Tankers are refusing to transport Russian oil. Rates are supposedly 300% higher to transport the oil for those willing to take the risk.

Long term, Russia has effectively destroyed it's reputation to the west as a reliable energy producer. This will finally wean western europe from the Russian energy teat. The shunning of BP and Shell was a startling development. This was not based on political concerns, but based on a risk/return assessment by their boards.

That fact alone should tell you what is really happening. Oil companies do not blithely walk away from 10's of billions of dollars of investment.

[RussBLib]

2. because too many people will whine about ....

... high gas prices.

I think that's about it. It would raise inflation even higher!!!

[Omnipresent]

3. Russian oil is big income for Russia, but it not all that Putin's Russia needs.

I’m just hoping he pisses off enough Russian oligarchs, so they end up taking him out.

[TrunKated]

4. frankly, now that people are resuming long commutes...

Extremely high gas prices would become a choice between going to work and being able to eat/pay bills/etc.

This is life in places like NJ.

[BlueTsunami2018]

5. You know why.

It already looks bad for November, if you want the fascists to absolutely obliterate us in the midterms go ahead and let people see six and seven dollars a gallon for gas. Forget about it.

People don’t understand geopolitics and economics but they do know the prices of the things they’re paying for. As stupid as it may be, the President and the party are being blamed.

[WHITT]

6. It Would Crash The U.S. Economy

And no surprise, Senator Portman called for doing exactly that on the PBS Newshour yesterday. Repubs are SO transparent. They would then blame Biden for the bad economy.

[AlexSFCA]

11. It will cause higher gas prices - maybe 30%, not double

In Europe, prices may double. It does seem that people might be willing to pay the price to get rid of putin. Oil and natural gas embargo on russia are the only sanctions that will work.

[Buckeyeblue]

9. Oil is still our God

You may not like the religion but you still must suffer the God.

Or to paraphrase James Joyce: There is no God but his mother is oil.

[smirkymonkey]

18. Wait, I thought that was the "great philosopher" Toby Keith?

Or did I dream that?

[Buckeyeblue]

19. LOL...Toby Keith/James Joyce. What's the difference?

[BannonsLiver]

16. Suddenly everyone is a geopolitical strategy expert.

[jcgoldie]

20. Its a question

Thats what it is a discussion forum nobody claimed to be a fucking expert. Engage the question or don't or I suppose you could just dismiss it because it wasn't posed by an expert. Nancy Pelosi seems to agree that this is the correct course of action BTW based on her comments today but then again maybe she isn't a "geopolitical strategy expert" either.

[BannonsLiver]

22. And the answers were only a google search away.

Imagine that.

And yes, it was a question. A question disguised as a criticism.

[Wingus Dingus]

17. We will have to.

[Hav]

21. This step might become inevitable

I've seen that share prices of 2 big Russian oil companies have totally collapsed. Maybe it's expected that despite the lack of direct sanction, oil companies will still take a major hit.
But it really seems that the willingness to enact sanctions on things that hurt you isn't as strong. I agree, Putin and the Russian economy need to be crippled to the max.