US Gas sales to China dries up as Ukraine war halts Energy trade - page 3.

dansus021

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Part of AOBT - English Translator to Indonesia

Quote from: TimeTeller on June 25, 2022, 05:45:43 PM

With this situation, I can't blame those countries who are still buying gas from Russia.
Because for some of these countries, they are only thinking about the welfare of their people.
So if they can buy oil and gas at a discounted rate, why not? And if it is relatively near their jurisdiction, they would definitely buy from Russia.
Just think that a lot of countries globally have increased their fuel prices, and most of their people can't cope up with this price increase.
Most haven't recovered yet from this pandemic crisis and now, people are experiencing this bloated gas prices.
So for me, you can't blame these countries secretly buying from Russia's oil and gas.

this also happen to my country in indonesia that we buy oil from russian with discounted rate it because the high oil price we cannot like make the price goes up many will suffer from it and there is news about it Embarrassed

the sanction and after covid pandemic high inflation rate and much more make small country or development country hard to move

hatshepsut93

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Quote from: Zlantann on June 25, 2022, 03:47:11 PM

For now it seems the sanctions on Russia is having more negative impact on Europe and US than the sanctioned nation.

"For now" is the key word here. Oil and gas prices will drop when countries will start producing more of them. And Russia can't simply sell all the oil and especially gas that it was selling to Europe - there's no infrastructure or demand among its friends for that. Combine this with the discounts they have to make to make their oil more attractive, and you'll see that in next 2-3 years Russian fossil fuels revenue is going to drop. And that would be very painful, because that's 50-60% of Russian budget, as they don't have any significant high technology or service exports.

TimeTeller

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Quote from: Zlantann on June 25, 2022, 03:47:11 PM

Russia is a major player in the world economic system. It would be very difficult to displace them in the global oil and gas market. They produce oil and gas at a very cheap rate and can sell them at a discounted price. China is also a big global economic player that cannot be sanctioned for their transactions with Russia. China and India would keep doing business with Russia and there is nothing US and its allies would do about it. Even smaller countries are still buying cheap oil and gas from Russia secretly. For now it seems the sanctions on Russia is having more negative impact on Europe and US than the sanctioned nation.

With this situation, I can't blame those countries who are still buying gas from Russia.
Because for some of these countries, they are only thinking about the welfare of their people.
So if they can buy oil and gas at a discounted rate, why not? And if it is relatively near their jurisdiction, they would definitely buy from Russia.
Just think that a lot of countries globally have increased their fuel prices, and most of their people can't cope up with this price increase.
Most haven't recovered yet from this pandemic crisis and now, people are experiencing this bloated gas prices.
So for me, you can't blame these countries secretly buying from Russia's oil and gas.

Zlantann

legendary

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Merit: 1100

Russia is a major player in the world economic system. It would be very difficult to displace them in the global oil and gas market. They produce oil and gas at a very cheap rate and can sell them at a discounted price. China is also a big global economic player that cannot be sanctioned for their transactions with Russia. China and India would keep doing business with Russia and there is nothing US and its allies would do about it. Even smaller countries are still buying cheap oil and gas from Russia secretly. For now it seems the sanctions on Russia is having more negative impact on Europe and US than the sanctioned nation.

jackg

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https://bit.ly/387FXHi lightning theory

If the amount of oil imported to China was substantial, this might've just been a way for China to increase the strength of the Yuan to increase their earnings from their exports market and solve issues they might be having with covid and their economy (like the housing market).

China is still the second largest holder of US government bonds too from what I could find (holding about $1tr). This could also just be taking advantage of Russia's situation too - if you're being offered the same thing at a 30% discount, it'd make sense to go with that.

Majestic-milf

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By this time last year, China had been loyal patrons in the purchase of US natural gas but seem to lose interest as they have located a better, closer source. The US- China energy trade deal, entered in Jan 2020, after the trade war between Washington DC and China in 2018 during Trump's administration, entailed a pledge from Xi's govt to buy about $200billion worth of US goods and a $52.4 billion in energy.
China's crude oil imports from Russia soared by 55% from a year earlier to a record level in May, displacing Saudi Arabia as their top supplier. Could China's reason for switching to Russia from the US as a result of closeness of boundaries or is there an ulterior motive?
While the US are aggrieved that they've been snobbed, Russia has a lot to be grateful for as the 30% discount offered to the Chinese government looks to be piling his coffers despite the sanctions from the West aimed at crippling their economy. In May, the Kremlin raked in around $20bn just from the exportation of oil alone! https://toutiaoqushi.com/us/articles/1524e08b7865856c/

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