It’s hilarious that the G7 thought that they could just unilaterally set the price of Russian oil. You’d think that the forces of democracy would understand how capitalism works.
Since the G7 oil price cap was announced on Friday, Russia has retaliated cutting gas supply to Germany to zero, and joining forces with Saudi Arabia and others at OPEC+ to reduce global oil production.
I'm going to go to the pub to drink some beer now.
— Javier Blas (@JavierBlas) September 5, 2022
Indeed that is the order of events. So let’s review how we got here.
G7 countries set to back price cap on Russian oil t.co/DM7PDK1nfF
— Financial Times (@FT) September 2, 2022
First, the G7 get together and decide, hey I know how to stick it to Russia. We will unilaterally decide what their products are worth! Umm yeah, that’s called price fixing. Nixon tried it and most recently Maduro in Venezuela and we know how that worked out.
Breaking news: Russia has indefinitely suspended gas flows through the Nord Stream 1 pipeline, exacerbating a squeeze on Europe’s energy supplies t.co/dmrhQzLr0s pic.twitter.com/I4ZsddTRo1
— Financial Times (@FinancialTimes) September 2, 2022
So Russia, of course, says no thank you, we’ll just sell to China and India. Good luck finding product. And they turn off natural gas to Germany. Ladies and gentlemen, you are about to witness a country going from first world to their world within 6 months.
But we’re not done yet. You see, there’s a reason why they call it a “cartel”.
BREAKING: OPEC and allied oil-producing countries, including Russia, to cut their supplies to the global economy by 100,000 barrels per day, underlining their unhappiness with crude prices that have sagged because of recession fears. t.co/zFz0oGs0Jh
— The Associated Press (@AP) September 5, 2022
So much for the Saudi fist bump…
From Fist-Bump To Fisted: Oil Surges After OPEC+ Agrees On 100Kb/d Production Cut
www.zerohedge.com/markets/oil-surges-after-report-opec-could-cut-oil-production-100k-soon-today
I don’t think people understand what’s about to happen in Europe. It’s going to be catastrophic.
Germany’s industries are going to be ruined without the ability to power them with energy, and Germany is the manufacturing base of Europe. We’re talking about a complete collapse of the EU, not to mention people freezing to death and record unemployment.
Russia switches off Europe’s main gas pipeline until sanctions are lifted
www.ft.com/content/2624cc0f-57b9-4142-8bc1-4141833a73dd
Russia is playing the game with patience. They will strike the EU when they are most vulnerable, which is now through winter.
h/t Shaun Kaven