A New Turmoil for the Russian Oil?
Is the market going to be ultimately responsible for crushing the Putin regime through a drastic drop in the price of Russian oil, compared to attempts to limit the price at the international and individual national levels?
Given that a barrel of "Urals grade" oil (the standard blend of Russian oil) dropped to only $37.80 yesterday in the Baltic Sea export port of Primorsk, while the global oil benchmark "Brent" remained at $78.57, it became clear that something is happening that cannot be explained by the agreement of the G7 members to ban the transportation of Russian oil at the international level if purchased at a price higher than 60 dollars, Jutarnji list reported.
The so-called "Urals grade" represents by far the largest chunk of Russian oil exports.
As interpreted by Gregory Brew from Yale, who studies the history of the oil trade, the drop in the price of Russian "Ural" oil was by far the most influenced by the drop in demand in China. Bru interprets that this drop in the price of Russian oil is not a big surprise because "... it reflects softer conditions on the entire market. There is uncertainty about the global economy and about China's zero-Covid policy".
The expert from Yale notes that the market still has a dominant influence on the price of Russian oil, and the current market is characterized by a drop in demand. It is not about how much Russia increases or decreases oil production, nor how much the West wants to reduce Russian export revenues, but about relations in the international oil market. If there is a strong opening in China and an increase in demand, there is no doubt that in that case, the price of Russian oil will rise strongly again.
If there is no rapid increase in demand for Russian oil by China and...
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