Comments by "AQuietNight" (@AQuietNight) on "The Price Cap On Russian Oil Is A Stupid Idea - Energy Crisis Won't End!" video.

  1. There will be several major oil fields coming on line which will increase supply. Oil, gas sales to Europe from Russia was easy money for Russia. All Russia had to do is get oil out of the ground and send it over to Europe. No additional handling required other than processing big, fat payments from Europe. Plus, just giving Russia a headache has pleasures all it's own. Oil sales to India is not that big and India has made it clear, they'll go with who ever has the lowest price. India falls in love with anyone who gives them a discount. Self insurance is a nice idea unless your oil tanker is in a harbor and it explodes, taking buildings and people with it and now you have billions of dollars in liabilities. You are right, we will have to see how this plays out. Russia has little to sell outside of wheat and oil. I am not sure Russia will flood the auto market with Ladas and what can Russia sell to China that China doesn't already make? Is India going to be snapping up Russia made computers? Basically Russia's top three exports are oil, gas and coal.
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  2. The price of oil is not being capped. What is happening is the insurance for any liability for shipping oil is capped at $60.00/barrel. So a ship full of $90.00 barrel oil blows up, there is only an insurance payout for $60.00/ barrel. Insuring oil tankers is very expensive because liability insurance is pretty expensive. Basically you are insuring huge bombs. Or, if there is a leak in the tanker that spills millions of barrels of oil.. Clean up is incredibly expensive.
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  3. All this came about because Russia invaded Ukraine. No one was talking about this before Putin decide to go full bore Czar.
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  4. Putin essentially made Russia a vassal state of China. It's the Chinese that keep the lights on in Moscow now.
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