Miscellaneous News

Overbom said:

It will affect Russia 100%, although not the way people think it will.

With this price cap in place, China and India will use it as leverage to get more discounts from Russia. Countries aren't a charity, for something as important as oil no country is going to leave money on the table

That's how the price cap is going to damage Russia's finances, not directly but indirectly instead

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what China did is buy discounted Russian oil, blend it with Saudi oil, and sell it as refined fuel, country of origin, China, at full price.

MixedReality said:

Medvedev is a moron. Why is an ex-Russian President on western social media anyway? Medvedev is a liberal and a dumb one at that. Just slightly better than that drunk Yeltsin. He wanted so badly to be accepted by the West. I’ve got my problems with Putin for his soft approach on Ukraine, but Putin is far better than Medvedev.

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i am not sure why there is misconception about Medvedev. if he was allowed to fully implement his projects. Russia would have been far ahead in semiconductors. he wanted to bring alot from emigres working in West. alot of visits labs and firms globally.

see this quote from former Intel CEO.

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There is a great history of state-directed development efforts in Russia (space program, nuclear, aircraft, etc.) but this is a totally different, bottoms-up entrepreneurial effort that will test the establishment.

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FairAndUnbiased said:

what China did is buy discounted Russian oil, blend it with Saudi oil, and sell it as refined fuel, country of origin, China, at full price.

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So, China gave less money to Russia, right? Thanks for confirming what I said

Russian oil is about to become cheaper. As I said, no country is a charity

Topazchen said:

Medvedev would have lost Syria and the strategic naval facility at Tartus had he been president in 2014/15 when the rebels looked like they were going to win.
I also doubt he'd have had the balls to annex Crimea and back/instigate rebellion in the Donbass in response to the Western overthrow of the Russia friendly government.

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these are institutional decision. Syria is not what people assume.
who went to Saudi King funeral in 2015?. there are protocols of who they want to receive.
after new transition in 2015. practically every one from Saudi establishment showed up. and they show up again few months later.

Overbom said:

So, China gave less money to Russia, right? Thanks for confirming what I said

Russian oil is about to become cheaper. As I said, no country is a charity

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no. that's not how it works. as oil is removed from the global market, the market price rises.

Russian discount price is %global oil prices, not a fixed price. The %discount does not change, so the discounted price rises with the global oil price. This is a well documented phenomena even by the most rabidly anti Russian media.






What does happen is that by China buying Russian fuel at the discount price (still increased compared to before) then blending, refining and selling it, China profits even more, while still granting Russia an increased price. The only ones who pay in the end are those who attempted to sanction Russia.

FairAndUnbiased said:

as oil is removed from the global market, the market price rises.

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Is oil really removed from the market though? Oil isn't gas, they can just shift oil exports from EU to China and others. Depends on the infrastructure of course

In the end, the total oil on the market remains the same because if China buys more Russian oil, it will buy less Saudi Arabian oil, which then the EU will come and buy (or buy China 'Russia-free" oil..)

Overbom said:

Is oil really removed from the market though? Oil isn't gas, they can just shift oil exports from EU to China and others. Depends on the infrastructure of course

In the end, the total oil on the market remains the same because if China buys more Russian oil, it will buy less Saudi Arabian oil, which then the EU will come and buy (or buy China 'Russia-free" oil..)

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There is such a thing as cutting production, which has already been done.

FairAndUnbiased said:

I am not a subject matter expert in upstream petroleum. Is there the possibility of sealing the gas inside the reservoir and not producing it? Just turn the valves off?

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It depends a lot on the equipment. Usually, it is economically infeasible to stop production and then restart it. Most of the time excess output is either stored or just simply burned out.