Quote (Black XistenZ @ 26 May 2022 14:41)
I've already explained this before. A rushed oil embargo will only send oil prices soaring, which counteracts the loss in revenue that Russia makes from its (now diminished) sales. That's the short-term outlook. In the medium-term, an oil embargo will only lead to a reshuffling of the global oil market, with Russia selling more to China and India, who then buy less from Gulf states, who are thus free to sell more to the Europeans. In the end, China and Opec will be the big winners, Europe will be the loser, with Russia falling somewhere in between and not being guaranteed to actually end up worse off than before.
So while an oil embargo is indeed possible without prompting a full-blown economic collapse, it does come with a heavy economic price for ourselves while it is doubtful if it will even be effective. Not every kind of sanction that would be feasible is also useful.
Russian is still selling oil to Asean. Not Singapore though, but the entire of Asean.
A 3 billion combination of India and China plus another 650 to 700 million people combined.
And we are not even taking into account of Bangladesh , Sri Lanka and even South Korea ( who is still buying Russian oil ).
USA with a population of 300 plus million already consume more oil and gas than China and her population is 4 times the size of the Untied States.
Do you really think China and India and Asean will buy less from Gulf States? I would think maybe not. As a matter of fact I think oil and gas consumption will only increase.
If anything Gulf states are looking at China and India and Asean because they will be the largest consumer sooner rather than later.
And since now United States has turn from a consumer to a competitor in Oil and Gas towards the Gulf states , we will see how things will unfold within the next couple of years.