After more than a year of speculation and unofficial commentary, two of Ukraine’s top officials have now publicly confirmed what many analysts long suspected
No. Oil has to be a certain price per barrel for extraction to be profitable. Currently the price is below that level for the US, which is primarily done by fracking.
Russia has to undercut already low prices in order to get China/India to accept the sanctioned oil. Any rise in price means they get to ask more while still being cheaper.
Edit: I was wrong. Russia is allowed to export at a maximum price of $60/barrel. Price going up gives them no benefit.
Sigh. Yes you don’t want it super low to the point of being unprofitable. Right now, with wars with 2 (two) oil producing nations the risk is super high prices. That’s Russia and Iran. No politician wants super high gas prices for obvious reasons.
Seriously what do y’all think would happen to oil prices if Russian oil production is blown up? Prices will go up. Obvious. That’s why the US doesn’t want Ukraine to blow it up. If the US wanted high oil prices, they would want Ukraine to blow it up. But they are telling them to not. Cmon guys this is simple.
Ok, I looked this up as you were being serious. And I didn’t realize Russia had a price cap as the sanction, rather than halting all oil production. So it’s not that Russia undercuts the market, it’s that Russia isnt legally allowed to sell it for any amount above it.
You’re right. They would want the price of oil to go down.
But the point still stands that the US needs the price to go up to be profitable. Which puts this all in a really weird lens.
You don’t want super low, but you don’t want super high like what will happen if Ukraine blows up Russian oil plants. Right now the risk is super high. Now add in Iran. No politician wants high gas prices.
Other way around, they want to keep oil prices low.
Why?
Billionaires make more money when inflation is high, and everyday people spend more money when inflation is high.
High inflation shifts wealth upwards.
See my other comment.
No. Oil has to be a certain price per barrel for extraction to be profitable. Currently the price is below that level for the US, which is primarily done by fracking.
Russia has to undercut already low prices in order to get China/India to accept the sanctioned oil. Any rise in price means they get to ask more while still being cheaper.Edit: I was wrong. Russia is allowed to export at a maximum price of $60/barrel. Price going up gives them no benefit.
Sigh. Yes you don’t want it super low to the point of being unprofitable. Right now, with wars with 2 (two) oil producing nations the risk is super high prices. That’s Russia and Iran. No politician wants super high gas prices for obvious reasons.
Seriously what do y’all think would happen to oil prices if Russian oil production is blown up? Prices will go up. Obvious. That’s why the US doesn’t want Ukraine to blow it up. If the US wanted high oil prices, they would want Ukraine to blow it up. But they are telling them to not. Cmon guys this is simple.
I’m sorry I really can’t figure out if you are being serious or not.
…
Ok, I looked this up as you were being serious. And I didn’t realize Russia had a price cap as the sanction, rather than halting all oil production. So it’s not that Russia undercuts the market, it’s that Russia isnt legally allowed to sell it for any amount above it.
You’re right. They would want the price of oil to go down.
But the point still stands that the US needs the price to go up to be profitable. Which puts this all in a really weird lens.
…
The US is a bit exporter now and low oil prices (well lng) will bankrupt our producers.
Or so I heard sometime after this administration started breaking shit.
You don’t want super low, but you don’t want super high like what will happen if Ukraine blows up Russian oil plants. Right now the risk is super high. Now add in Iran. No politician wants high gas prices.