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EU agrees $60 a barrel price cap on Russian seaborne oil

  • Last Updated:
  • Dec 5th, 2022 12:11 am
[OP]
Deal Addict
Apr 27, 2015
2887 posts
1536 upvotes
Mississauga

EU agrees $60 a barrel price cap on Russian seaborne oil

https://www.nasdaq.com/articles/eu-agre ... u-diplomat

What is your opinion on this EU move (not in political , but market sense)? How WTI, NA oil stocks and market globally will react?

What I think that
On one hand Russia can stop selling oil to UE/G7 - in this case WTI should jump as well as oil stocks (OPEC is not going to increase production)
On the other hand , if Russia start selling with discount, they will dominate markets.
"All animals are equal but some animals are more equal than others" George Orwell
2 replies
Deal Fanatic
Feb 4, 2015
8862 posts
5123 upvotes
Canada, Eh!!
Probably little reaction.

Just keeps Russian oil selling. However they said they won't sell to countries that accept cap and anyways aren't China and India buying for same or bit less?

Helps Biden in that he may not have to release any more reserves since Russian oil continues to hit market and not totally removed.
2022: BOC raised 8 times and MCAP raised its prime next day.
2017 to 2018: BOC raised rates 5 times and MCAP raised its prime next day each time.
2020: BOC dropped rates 3 times and MCAP waited to drop its prime to include all 3 drops.
Deal Guru
Oct 7, 2010
13432 posts
4342 upvotes
georvu wrote: Probably little reaction.

Just keeps Russian oil selling. However they said they won't sell to countries that accept cap and anyways aren't China and India buying for same or bit less?

Helps Biden in that he may not have to release any more reserves since Russian oil continues to hit market and not totally removed.
China most likely don’t need to buy more oil. Their industries are getting hit hard by the Covid. Why they don’t accept their vaccine is trash and just buy BioNTech vaccines are beyond me. What is this sense of pride?

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