Originally Posted by SoCalBronco
Yes of course he is going to try to sell to China instead. In fact they may have an agreement in May. Three big problems though: 1) Quantity of sales- They amount they are hoping to sell is roughly 25% what they sell now to the EU, so replacing Europe with China is a massive loss of revenue 2) Price of sales - With China as the main remaining purchaser, they have no leverage and reports are China wants a cheaper price than what EU was paying 3) Market Supply - If the US lifts its export ban, what do you think the extra supply of oil on the market will do to price? It will fall...and so will the Russian economy.
I believe you're missing one key point. Oil is traded in dollars, in this Russian/China agreement, Oil is traded in gold. That will be a massive hit to the US economy. So to say its no big deal, is really disingenuous.