So yes, I understand markets are speculative and there is a war going on with sanctions being brought down hard on the Russian economy, however none of that has been oil outside of reports today that USA is leaning toward banning Russian oil. So the USA will need to find somewhere else to make up that difference. So lets say they decide to buy that difference from the UAE, that creates a domino effect obviously but the thing is, that Russian oil the USA is not buying is still in the market right? so if the USA doesn't buy it, wouldn't someone else just buy it? making it all a wash?
Lets say all of the west decides to not buy oil from Russia, leaving a surplus of Russian oil in the market, that would lower the price of their oil and surely countries like China would come in buy it and that would take those countries out of the market for the other oil produced from other countries, lowering demand, no? Even if there is so much Russian oil that countries like china and others who would be willing to buy can't use it all, wouldn't they just buy it and then sell it, taking the profits away from Russia adding supply to the market while allowing the west to not pay Russia?
I can't see Russia deliberately killing it's one of few sources of income right now, so it's hard for me to see them refusing to sell.
So I guess what I am asking, with the markets being speculative, what exactly is it speculating?
Leave a Reply