Topic: US Gas sales to China dries up as Ukraine war halts Energy trade - page 2. (Read 569 times)

I don't think I can predict what will happen, but I doubt the United States will allow its sales to China to decline. It would be an easy way for Russia to gain a stronger foothold in the Chinese market. And if this were to happen as we expect, then America's petroleum industry would not be able to rest on its laurels. The need for China and other countries around the world to continue using American gas will become even more apparent.

The fact that the US has established itself in so many places around the world means that our exports and imports to other countries are likely to be affected by US military and political decisions.

Haven't laughed so hard in a long time
Iran has uranium enrichment centrifuges, but that doesn't mean they have ballistic missiles. If they are not there, then the application will be local, and in fact it will be a tracing-paper with "Russia's super victories", well, or as normal people call such a situation "shoot themselves in the foot."

"and there are rumors that they have nuclear weapons" - they say that chickens are milked! Folk wisdom for such cases


"The Russians will provide this country with modern weapons." - here I just roll on the floor, and laugh out loud 
Those. miserable Führer of terrorists, flew to Iran, to beg from Iran for UAVs, which Russia itself cannot do, and those that did, they are easily knocked down by the Armed Forces of Ukraine! Do you have a state of dissonance is the norm?

"greated the debt to the American treasury by about 10 trillion dollars." - and you are not aware that 10 trillion for the largest economy, whose currency is international, and in fact there is the blood of the world economy, is this a trifle? Now military-industrial complex enterprises are starting to operate in the United States, which will fulfill state orders to ensure Lend-Lease (for the next victory over fascism and Nazism, as in 1941), and will easily "digest" all the printed "extra" trillions of dollars? Yes, and all countries help the dollar, "eating" extra dollars! The same India helps to do this by selling and buying technology, equipment, etc. for dollars

Luckily US is so much weaker than Iran to attack it. As CENTCOM commander said to The Newyorker, "Iran has already reached overmatch". Besides the plan to invade Iran has been on US regime's desk for 43 years, the 20% US casualties in operation Eagle Claw is still a nightmare for POTUSes ever since Jimmy Carter, and that's without Iranians even lifting a finger. The memories are also renewed every now and then like the biggest ballistic missile attack against United States in history on January 2020 that wiped out 2 US bases.

Iran is not going to be a cakewalk like Iraq. They have facilities to enrich Uranium and it is rumored that they are having nuclear weapons. And given the NATO involvement in Ukraine, in case the Americans invade Iran then in all probability the Russians will provide advanced weaponry to that country. The conflict will get out of control and in the end we will be having the 3rd World War. Anyway, any potential invasion of Iran will ruin the American economy. The misadventures in Iraq, Afghanistan and Libya added around $10 trillion in debt to the American exchequer. The cost for invading Iran will be much higher.

Wonder if some warhawks in the senate are considering another invasion of a nation? I mean the Iraq oil is famously given to american companies already, and that means all the oil sold from there, would be ending up back in the USA banks, and USA economy. If they invade another place like that, then maybe they would have another profit. They are notoriously hating Iran as we know it, and that nation is a hardcore islamic nation, maybe they will say they are bringing "democracy" or "freedom" or whatever BS they keep telling people, and get their oil? I do not know, but that seems like a danger to all of the world. An oil hungry USA, is never a good thing to anyone, they could kill hundreds of thousands of innocent people to get their hands of oil, and then make hundred movies about it.

Sanctions pushed the cost of russian down apprroximately 20%. Creating an arbitrage opportunity for buyers and resellers of russian oil to increase their profit margins. We know that india is officially reported as engaging in the practice. Other nations could as well. 20% reduction in oil prices below market value is simply too attractive to ignore.

Oil in the united states is demonstrably more expensive. The higher cost is stacked on top of shipping fees to transport american oil abroad making US oil prohibitively more expensive. Current market circumstances reflect russian oil becoming cheaper while american oil trends in the opposite direction.

Increasing oil production in the USA could reduce prices. But there is controversy as to drilling permits and what the policy around them should be. As well as other circumstances contributing to negative market conditions.

Exactly ! Some really joyfully clap their hands and yell "brotherly China is saving Russia" But they don't understand that the market has simply been redistributed, where now the terrorist country is leaving the European gas market, and is trying to sell unnecessary gas. This is used to the fullest, China. And in such a way that the saying "You don't do that with friends" is quite suitable here China is forcing Russia to lower the price to the level that China wanted. And Russia cannot refuse China, but in fact the "big brother"!
And at this time, Russia, which even economically (with gas) tried to terrorize its friends in Germany and France, is quietly and calmly replacing the United States with its own gas, and a significant event already occurred a month ago - the volumes of gas sold by the United States on the EU market exceeded the volumes sales of gas from a terrorist country.

Ok, so China is getting cheaper gas from Russia with huge discount due to sanctions.  Fairly safe to say the US gas/oil sales that have dried up in China will find a new home in Europe as gas/oil supplies there received from Russia are drying up.  The energy hustle don't stop.

Do not remind me - whose phrase "I am not interested in Poland, the Baltic countries, these European dwarfs, the industrial basis of Europe - Germany, France, Austria"? I did not quote verbatim, but as accurately as possible in meaning So, these "dwarfs", for your understanding, will easily endure this and other winters, and of course without Russian gas. And those who sold the interests of their countries and allowed Gazprom to monopolize their markets-retribution came, yes yes! But I think the people of Germany will now be more careful in their choice of their leaders, and now they will choose not the Kremlin's bedding, but really strong ones, about German politicians!
And I am sure that the next 1-2 years will be very difficult for Germany, the decline in industrial production, perhaps even the loss of the status of a European leader. That is why now the euro has fallen so much, and most likely will continue to fall. BUT ... you have to pay for all crimes! This will be a very strong lesson for Germany!

There  is no reason for China to buy overpriced hydrocarbons from the United States, after the recent comment from Joe Biden regarding Taiwan. China is very strict with their territorial rights, and they never take these comments lightly. On top of that, Russia is ready to supply LNG and crude oil at heavily discounted prices. Who in their right minds expect the Chinese to continue with their American purchases, when they have a much cheaper and friendly alternative available? As of now, China remains one of the beneficiaries from the sanctions against Russia and Belarus.

I mean it would make a ton more sense right? Russia is right there, whereas USA is all the way on the other side of the world. It would be much easier to just get those gas and energy or whatever really from Russia instead of any other nation. Plus with Russia in war, they are sanctioned and they  can't sell their gas to too many places, hence they would be willing to do even discounts to china as well.

This will result with China preferring Russian gas for a decade or longer and they will not care about American politics. Sure China and USA had a "trade war" before, but this would be like trade break up I know that sounds silly, but China just found a hotter and sexier gas provider, and they want to go with that.

Increasing the strength of Yuan will not make it attractive for trading with other countries. Most economist also have the same opinion, they have to maintain its value low for every country to trade with them. Same with Russia's  ruble they have to maintain its value so  trading gas and oil from them will continue. And to make this happen they have to invest somewhere outside build relationship to other countries.

Its not just motive to circumvent the sanctions but build relationship like how  China did to different countries through the BRI. They invest everywhere, Russia offer loans too  just recently they provided loan to Sri Lanka.

After the war between Ukraine and Russia started situsation changed and especially in many countries where they were buying gas and oil from Russia. But when this happened from the Russian side china tried by still there a big gas buyer from Russia because of relations I guess they can even buy gas from Russia with better conditions than before, in other words, china got a better place to buy gas so they will not focus os the USA anymore because of their relations with the Russian government. I think this situation can make some bad effects on the USA and Europe side.

Heh, there is no halting of the energy trade at all, be warned. It's merely China switching to cheaper alternative supplies.

Ulterior motive? Nah. We all those kind of decisions strategic thinking, and those are done for the interest of their own country, not for the pure undermining of another one.

Some countries aren't opting to produce more. Both the EU and US have committed to transforming their energy sector into green energy so it isn't clear that some countries will revert back to traditional based energy sources. Germany is reverting back to coal, but they are a singular case. The US in particular haven't been increasing their oil production, and green energy forms are undeveloped so they can't produce the energy they need through greener methods.

Russia can still sell to China and India. Ruble is somehow one of the best performing currencies as of late. It's solely based on energy.

US has a lot more to grieve about if 30% discount is correct because that means China would expand its economy more and increase its distance from the Western competitors. In other words the shrinking US economy is going to shrink even more since the production cost in China would be a lot less now.
This could be the reason why US economy is slowly falling apart these days.

Yes, almost all over the world there is inflation and the global economy is also currently not doing well,
when the price of oil goes up without realizing it will cause a domino effect and make others also go up,
If conditions continue like that, it will certainly make a small country go bankrupt

Where I live gas prices have basically doubled during the last year and things are probably going to get worse during the winter, so if a government that is not involved directly or indirectly in the war can take advantage of the situation and get cheap gas then I am not surprised they take advantage of the opportunity given to them, after all most of the economies of the world are in a bad shape and getting a discount in such a strategical resource can be critical to slowdown the inflation rate in their country.

Europe does not have the opportunity to wait 2-3 years for the sanctions to take effect on Russia, because it will not be able to winter the coming winter without energy supplies from Russia.

Is there an ulterior motive? Not only yes but the ulterior motive here is definitely the main motive. Everything else is secondary. China has been acting as the damage controller for Russia. China has significantly cushioned the impact of the various sanctions imposed on Russia. In a way, China is one of the reasons why Russia is still able to continue with its invasion even if it already suffered a lot of failures. China's help sustains it.