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Old 03-26-2014, 08:08 AM   #25
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Join Date: Feb 2004
Location: SLC Utah
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Originally Posted by SoCalBronco View Post
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.
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