Europe is trying to impose a cap on Russian oil at $60 a barrel. Russian authorities rejected a price cap and threatened to stop supplying the nations that endorsed it.
Australia, Britain, Canada, Japan, the United States and the 27-nation European Union agreed to cap what they would pay for Russian oil at $60-per-barrel. The limit is set to take effect along with an EU embargo on Russian oil shipped by sea.
In all honesty, this is the most braindead decision up their with trying to peg currencies. These people constantly reject any understanding of a business cycle and follow in the footsteps of Karl Marx believing that they even have the power to regulate prices of anything. Bretton Woods collapsed because of this same stupid reasoning of fixing the the dollar to gold at $35 per ounce. They capped the price of gold to dollars but never limited the amount of dollars they created. A 3-year old with a pocket calculator could have figured out that system would collapse.
Then this high-heel dancing head of Ukraine, President Volodymyr Zelensky, meanwhile, actually revealed the Ukrainian hatred of Russians and why Russia came to the aid of the Donbas because they would massacre every Russian they get their hands on as they did in Odessa as the West was silent for Russians are not entitled to human rights. Andriy Yermak, the head of Zelensky’s office, wrote on Telegram, staking out a position also favored by Poland which has also lost its mind, which will further create World War III since that is what has already been announced against Russia.
“It would be necessary to lower it to $30 in order to destroy the enemy’s economy faster.”
Granted, Russia’s crude has already been selling for around $60 a barrel, which is a deep discount from the international benchmark Brent. Whatever these people can do to create chaos in the world markets and bring the world to the brink of a major international war, they are doing it brilliantly.
BTW, our model called the low in 2020, had a Directional Change for 2022, and the next key turning point is the strongest on the Array in 2023. So thank you, braindead politicians. I am sure they will blame Putin and argue he is using energy as a weapon when, by their own statements, that is what they are doing to bring down Russia.
These world leaders are trying to cap the price of oil below market value and then this evil leader of Ukraine, Zelensky, wants the cap to be $30. I warned that Zelensky will be the man, or whatever pronoun he/she prefers, that will create World War III just as the Serbs began World War I. A low in 2023 will most likely see a slingshot up into the years ahead.