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It's a global market. Europe needs X barrels, China needs X barrels. If China buys from the us, it isn't buying from Canada and visa versa. Extra supply benefit
by benj111 4y ago
It's a global market. Europe needs X barrels, China needs X barrels. If China buys from the us, it isn't buying from Canada and visa versa. Extra supply benefits all buyers whether China or Europe.
- habibur 4y agoThis. Interesting to see that I always find the most practical answer at the bottom.
- TomSwirly 4y ago
- nathanaldensr 4y agoWould you mind clarifying how they are wrong? One plausible reason might be that there are different kinds of oil and refined products, so different buyers aren't actually just buying "oil."
- ajot 4y agoI'm not the person who you asked, but I think his point is with the keyword "unlimited". Fossil fuels are not unlimited, so selling a reserve of a limited asset doesn't seem to be a good strategy.
- brailsafe 4y agoWouldn't that not be true at all? How would China not be buying from multiple suppliers?
- guerrilla 4y agoNo, it's definitely true. Any significant supply put on the market slows prices everywhere. As they said, the market is global.
- ncallaway 4y agoThey don’t mean when China buys from us they buy nothing from Canada. They mean when China needs X additional barrels of oil, and they buy it from us, then they don’t buy those X additional barrels from Canada.
- refurb 4y agoRight, oil is fungible (well almost - there are different grades). But a barrel is a barrel is a barrel, anywhere in the world. So if we sell to France and Russia sells to China, it's no different than if we sell to China and Russia sells to France -> the "same" oil ends up in the same place and the same money ends up in the same place.
- landemva 4y agoThis (fungible, worldwide market) may explain why embargoes don't generally achieve the stated goals. Your explanation shows the goods still travel, though through more middlemen.
- ratsmack 4y agoWe sold to China only to hurt Russian oil sales, but it didn't work. China still bought large amounts of oil from Russia and then resold it to Europe.