09-05-2022, 06:34 AM
It all depends on being able to enforce the restrictions on insurance and preventing the Russians from cheating the sanctions.
If the restrictions can’t be enforced over insurance, the scheme will collapse for the same reason any cartel will collapse. If the price cap is set at $50, there are plenty of willing buyers without scruples (India, China) who will be happy to buy it for $55. Russian oil will continue to sell at a discount, but probably at a substantially higher price than the cap.
How, where that’s how evading sanctions comes to pass.
https://www.bloomberg.com/opinion/articl...#xj4y7vzkg
BC
If the restrictions can’t be enforced over insurance, the scheme will collapse for the same reason any cartel will collapse. If the price cap is set at $50, there are plenty of willing buyers without scruples (India, China) who will be happy to buy it for $55. Russian oil will continue to sell at a discount, but probably at a substantially higher price than the cap.
How, where that’s how evading sanctions comes to pass.
https://www.bloomberg.com/opinion/articl...#xj4y7vzkg
Quote: Chinese imports of Malaysian crude oil have surged to almost 800,000 barrels a day — more than what the Southeast Asian nation actually produces. The waters of Malaysia are a hot spot for ship-to-ship transfers, allowing unscrupulous traders to mix crude from other origins and rebrand it as Malaysian. The actual origin likely is a mix of market pariah states Iran, Venezuela and Russia.
BC