4 ms·
And yet the EU keeps opposing an oil price cap
by wyuenho 4y ago
And yet the EU keeps opposing an oil price cap
- deleted 4y ago[deleted]
- jostiniane 4y ago
- pydry 4y agoAn oil price cap is fundamentally little different to a ban.
- refurb 4y agoHow would that work? If it costs $250EUR to deliver a barrel of oil, and you cap it at 100EUR, what happens? If you were an oil company and the government says you can only sell your 250EUR barrel of oil for 100EUR, what would do?
- wyuenho 4y agoExcept that oil is nowhere near that expensive in reality, and oil companies aren't buying oil at anywhere near that price. The reason it's expensive in Europe now (for consumers) is because the EU lump oil and gas together into one price, and gas is expensive, so oil got expensive, but the oil companies haven't paid nearly that much to buy it in the first place. That's why they are having a massive windfall and the EU is going to tax them. These are all problem can be solved by capping oil price. Oil is a buyer's market, the US and Canada are producing so much of it, if OPEC+1 reduces output, it just amounts to a suicide for them.