{"id":64431,"date":"2022-12-10T09:44:22","date_gmt":"2022-12-10T14:44:22","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64431"},"modified":"2022-12-10T09:44:22","modified_gmt":"2022-12-10T14:44:22","slug":"eus-oil-price-cap-creates-a-price-cap-on-stupidity","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64431","title":{"rendered":"EU\u2019s Oil Price Cap Creates a Price Cap\u2026 on Stupidity"},"content":{"rendered":"
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EU\u2019s Oil Price Cap Creates a Price Cap\u2026 on Stupidity<\/a><\/h3>\n<\/header>\n
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MOSCOW, RUSSIA \u0096 DECEMBER 1, 2021: Russia’s Foreign Ministry Spokesperson Maria Zakharova gives a weekly press briefing. Russian Foreign Ministry\/TASS<\/p>\n<\/figure>\n

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The EU and the US went forward with their long-debated, long-telegraphed move to put a price cap on Russian oil at $60 per barrel.<\/p>\n

By believing they can pressure suppliers into not hauling Russian oil lest they run afoul of the sanctions that support the price cap, they believe they can take only Russian oil off the market for the long run.<\/p>\n

Because of the way oil is actually traded in the real world, versus the way it trades in Janet Yellen\u2019s head, this policy is actually much harder to implement than it actually looks. You don\u2019t buy oil at the crude oil counter at Target or Wal-Mart.<\/p>\n

There isn\u2019t a price tag you can look at and say yes or no too. As Tsvetana Paraskova at\u00a0Oilprice points out<\/a>, crude contracts are written based on a discount or premium to a benchmark price at a particular moment in time.<\/p>\n

\u201cPhysical traders rarely trade on a fixed price,\u201d John Driscoll, chief strategist at JTD Energy Services Pte Ltd, told Bloomberg.<\/p>\n

\u201cIt\u2019s a much more complex space where they trade on formulas and spot differentials to a benchmark crude for the trading of actual cargoes as well as for hedging that follows,\u201d said Driscoll, who has more than 30 years of trading oil in Singapore.<\/p><\/blockquote>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

EU\u2019s Oil Price Cap Creates a Price Cap\u2026 on Stupidity MOSCOW, RUSSIA \u0096 DECEMBER 1, 2021: Russia’s Foreign Ministry Spokesperson Maria Zakharova gives a weekly press briefing. Russian Foreign Ministry\/TASS The EU and the US went forward with their long-debated, long-telegraphed move to put a price cap on Russian oil at $60 per barrel. By […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,5],"tags":[281,21273,588,592,33135,694,16963,827],"class_list":["post-64431","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-geopolitics","tag-europe","tag-gold-goats-and-guns","tag-oil","tag-oil-price","tag-oil-price-cap","tag-russia","tag-tom-luongo","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=64431"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64431\/revisions"}],"predecessor-version":[{"id":64432,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/64431\/revisions\/64432"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=64431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=64431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=64431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}