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Those countries still need oil and that oil needs to be bought with dollars. Normally doesn’t end well for countries that try to break out of that system.
by wpm 3y ago
Those countries still need oil and that oil needs to be bought with dollars. Normally doesn’t end well for countries that try to break out of that system.
- xtian 3y agoGood thing there are no major geopolitical conflicts or realignments going on between the US and major oil producers
- killjoywashere 3y agoExactly. China sees the current sale price of Russian petroleum products as just such an opportunity, and is using the Northern Sea Route to move the products (1). The Russians have recently passed a law to further assert their control of that route (2). Interestingly, the US countered by conducting what amounts to a freedom of navigation operation in the area (3). (1) https://www.bloomberg.com/news/articles/2023-07-24/russia-s-northern-sea-route-gets-busy-with-oil-traffic-to-china https://www.bloomberg.com/news/articles/2023-07-24/russia-s-... (2) https://www.belfercenter.org/publication/new-russian-law-northern-sea-route-navigation-gathering-arctic-storm-or-tempest-teapot https://www.belfercenter.org/publication/new-russian-law-nor... (3) https://thebarentsobserver.com/en/arctic/2023/10/uscg-healy-docks-tromso-after-trans-arctic-voyage https://thebarentsobserver.com/en/arctic/2023/10/uscg-healy-...
- xtian 3y agoDon’t forget Iran and Venezuela. And the Israel/Palestine conflict, along with other geoeconomic factors, puts Saudi Arabia and other Arab nations in play. New production coming online via projects such as EACOP as well.
- _justinfunk 3y agoMaybe read up on the recent BRICS summits.
- thfuran 3y agoIt only needs to be bought with dollars until it doesn’t.