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Price of Crude Jumps as EU Foolishly Doubles Down On Sanctions

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94 comments on Price of Crude Jumps as EU Foolishly Doubles Down On Sanctions

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Oil embargo image from NICOLAS MAETERLINCK/ZUMA PRESS via Wall Street Journal.

The Wall Street Journal reports European Union Pledges to Curb Oil Purchases From Russia

The results were as expected in this corner: Oil Jumps as EU Commits to Partial Russian Crude Ban

Crude prices rallied after EU leaders said for the first time that they would impose an oil embargo on Russia over its invasion of Ukraine. The embargo would include an exemption for oil delivered from Russia via pipelines, an amount that makes up one-third of EU oil purchases from Russia.

Futures for Brent crude, the global benchmark, rose 1.6% to $119.52 a barrel. West Texas Intermediate, the U.S. marker, rose 3.4% to $119 a barrel, playing catch-up after the market was closed Monday.

This nonsensical idea was the subject of a Tweet thread yesterday involving Jeremy Warner, Associate Editor, The Daily Telegraph, and me.

Unworkable Carve Out 

“Good Lord, look at the damn results. Yet fools want more of it.” 

Boots on the Ground?

Existing Supply Chain

Proposed Supply Chain for Oil and Gas

Best We Can Get!?

Reuters reports ‘Best We Could Get’: EU Bows to Hungarian Demands.

European Union leaders handed Hungary concessions to agree an oil embargo on Russia over its invasion of Ukraine, sealing a deal in the wee hours on Tuesday that aims to cut 90% of Russia’s crude imports into the bloc by the end of the year.

By making a promise that the EU’s embargo excludes the pipeline that landlocked Hungary relies on for Russian oil, the bloc aims to reduce Moscow’s income to finance the war it launched more than three months ago in Ukraine.

“It’s a fair compromise … this was the best we could get,” Estonian Prime Minister Kaja Kallas told reporters as she arrived for the second day of an EU summit, where leaders will now discuss ways to mitigate soaring energy prices.

Oil prices extended a bull run after the EU’s agreement, stoking concern about inflation, which was ran at a record high of 8.1 percent year-on-year in euro zone countries this month, Eurostat said on Tuesday.

Best We Can Get!?

“This is surely unworkable – a carve out for Hungary, which allows its refineries to enjoy sky rocketing margins on sales elsewhere in the EU because of their access to Russian crude. It’s almost laughable,” said Jeremy Warner.

It seems the carve out for Hungary was “workable” after all, with predictable results.

Russia, China, Hungary, and energy producers are the beneficiaries of these terribly counterproductive sanctions.

This is my “Hoot of the Day” but it’s early. I may easily need bonus hoots. 

Guilty Meets Guilty 

Later today, president Biden will meet Fed Chair Jerome Powell to discuss the economy and inflation. Consider it a case of “Guilty Meets Guilty”.

For discussion, please see In a Rare White House Meeting, Biden Meets Powell to Discuss Inflation (Guilty Meets Guilty)

It seems they forgot to invite the EU and UK. 

This post originated at MishTalk.Com.

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Mike Shedlock

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94 Comments
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Oldest Most Voted
Carl_R
Carl_R
4 years ago
I would define “foolish” as not being prepared in the first place. Thus, it was foolish for the EU to develop a reliance on Russian energy in the first place without a plan for what to do in the event of something like the current situation. Once they have gotten themselves into a difficult situation, they have a difficult choice to make. On the one hand, they can refuse to buy from Russia, resulting in higher prices. On the other hand, they can buy from Russia, providing Russia with the cash flow to fund their continued invasion of Ukraine. Is one, or the other for these “foolish”? Both choices have disadvantages, but probably the least wise of the two would be to continue to fund Russia. Yes, higher prices are uncomfortable, but increased death and destruction can be uncomfortable as well, and more permanent.
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Jojo
Jojo
4 years ago
Here is what Biden says the USA’s role in Ukraine will be. You can take it or leave it but the reader comments from around the world are overwhelmingly positive.
————
President Biden: What America Will and Will Not Do in Ukraine
May 31, 2022
By Joseph R. Biden Jr.
The invasion Vladimir Putin thought would last days is now in its fourth month. The Ukrainian people surprised Russia and inspired the world with their sacrifice, grit and battlefield success. The free world and many other nations, led by the United States, rallied to Ukraine’s side with unprecedented military, humanitarian and financial support.
As the war goes on, I want to be clear about the aims of the United States in these efforts.
America’s goal is straightforward: We want to see a democratic, independent, sovereign and prosperous Ukraine with the means to deter and defend itself against further aggression.
As President Volodymyr Zelensky of Ukraine has said, ultimately this war “will only definitively end through diplomacy.” Every negotiation reflects the facts on the ground. We have moved quickly to send Ukraine a significant amount of weaponry and ammunition so it can fight on the battlefield and be in the strongest possible position at the negotiating table.
That’s why I’ve decided that we will provide the Ukrainians with more advanced rocket systems and munitions that will enable them to more precisely strike key targets on the battlefield in Ukraine.
….
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FromBrussels
FromBrussels
4 years ago
Reply to  Jojo
Cut your gullible bullshit man, if you haven t been following this dire Ukraine situation since 2014 you don t even know what you are talking about ! …. Senile Biden and the rest of criminal Deep State don’ t give a rat’s a$$ about corrupt nazi infested Ukraine being a fn democracy or not, it is ALL about weakening a too strong , economically healthy Russia, and driving a final wedge between utterly spineless EU and Russia ! THAT is what it is about, NOT democracy, in Ukraine or whatever country the US invaded in recent decades ! Btw our ‘great’ western countries have stopped being democracies too, in case you haven t realized yet…..
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whirlaway
whirlaway
4 years ago
Reply to  FromBrussels
“Btw our ‘great’ western countries have stopped being democracies too, in case you haven t realized yet…..”

Well, he ain’t buying that! Because just this morning, his favorite show on MSDNC told him that the US *is* a democracy! LOL

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Jojo
Jojo
4 years ago
Some of you can learn some history by reading this retort to a recent NYT editorial calling for Ukraine to cede part of its territory to the invading Russians so that we can return to “normal” with lower inflation and gas prices.
———–
NYT Board Fails to Understand the Russian War Against Ukraine. Here is Why
TUESDAY, 24 MAY 2022 — Bohdan Bernatskyi, Erik Kucherenko, Oleksandr Kushch, Nick Yurlov
Three months into the largest war in Europe since 1945, The New York Times Editorial Board published its Opinion “The War in Ukraine Is Getting Complicated, and America Isn’t Ready”.
The Board argues that:

1) Without clarity on U.S. aims and strategy the White House “jeopardizes long-term peace and security on the European continent”;

2) “A decisive military victory for Ukraine over Russia, in which Ukraine regains all the territory Russia has seized since 2014, is not a realistic goal”;

3) “Ukrainian leaders will have to make the painful territorial decisions” and “it is not appeasement”.
The US has been one of the key leaders of the Western support campaign for Ukraine. Given its leading role as a cornerstone of the Euro-Atlantic Alliance, any potential US policy shift on Ukraine would greatly affect the capacity of the collective West to act, especially in view of some European states’ reluctance to sanction Russia and support Ukraine. It is for this reason that the NYT Editorial causes so much preoccupation and deserves thorough response. We hereby address the key messages of the NYT Editorial Board to dispel certain delusions about Russia and Ukraine.
Who threatens the peace in Europe?
We would like to start with rebutting the thesis that the US is a security threat in Europe. This statement, which mystically repeats the mantras of Russian propaganda, is fundamentally flawed. One of the reasons for such a belief could be a lack of understanding of the power and culture dynamics between Ukraine and Russia. Many Westerners, such as John Mearsheimer, wrongly believe that “the West is responsible” for the Russian aggression against Ukraine since the NATO expansion “provoked Russia”. NYT, unfortunately, repeats it.
This view was rebuffed by Sir Adam Roberts: he explains how factors of the collapse of the empire (USSR), denuclearisation of Ukraine and the democratic “color” revolutions, not the US engagement in the region, contributed to the Russian aggression.
…
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RonJ
RonJ
4 years ago
Reply to  Jojo
Crimea was not annexed by Putin for some 14 years after he came to power.
Yanukovich was then overthrown in Ukraine. Shortly afterward, Putin moved to reclaim Crimea.
Action, reaction.
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Webej
Webej
4 years ago
Reply to  RonJ
Yes, these people keep hitting the unprovoked key, as if out of the blue Putin got out of the wrong side of bed, bang, invasion.
  • Eight years of Ukrainian shelling and 14,000 victims mean nothing.
  • The 100,000 troop army on the verge of over-running the DonBas are just talking points.
  • The talk of exterminating the colorado separatists (insects) on Ukr TV, just kidding.
  • The Azov battalion that prevented Mariopul (98% vote) from joining the DPR, just agitprop, same goes for all their Nazi props & tatoes and talk of fighting for Wodan and going to Walhalla, same with their statues & ceremonies for Nazi war criminals from the past, and their war crimes, all propaganda.
  • Presence of NATO (training 5 batallion/year and intimations of acquiring nukes, immaterial.
Who could have seen this coming? Why William Burns (CIA) predicted as much in 2007 [!] if the West kept not-provoking Russia.
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Jojo
Jojo
4 years ago
Reply to  Webej
Yeah baby! Give them some F-22’s next.
——-
U.S. providing new longer range missile systems to Ukraine
May 31, 2022
The U.S. will provide Ukraine with more advanced rocket systems and munitions, President Biden announced Tuesday in an opinion piece published by the New York Times.
Why it matters: The longer-range missile systems are intended to enable Ukraine’s military to “more precisely strike key targets on the battlefield in Ukraine,” Biden said.
• The U.S. will send an undisclosed number of M142 High Mobility Artillery Rocket Systems intended to help repel the advance of Russian tanks, a senior administration official confirmed in a call with reporters on Tuesday. The longer-range missiles have a range of approximately 48 miles.
• The official added that the missiles would be part of an upcoming aid package that is valued at $700 million. An exact dollar figure will be unveiled Wednesday, the senior official said.
Driving the news: “These systems will be used by the Ukrainians to repel Russian advances on Ukrainian territory, but they will not be used on targets in Russian territory,” the official said.
….
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Bam_Man
Bam_Man
4 years ago
The Eurotards will buy the Russian oil after it has been purchased first by India and then marked up 20%.
#WINNING#
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Doug78
Doug78
4 years ago
Reply to  Bam_Man
So India gets the oil at a 20% discount then sells it to Europe at world market prices and uses the markup to buy Western military equipment replacing the Russian ones. Russia loses another market.
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JRM
JRM
4 years ago
Reply to  Doug78
I see somebody is living in a fantasy world!!
Russia isn’t going to loose India!!!
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Doug78
Doug78
4 years ago
Reply to  JRM
Fantasy world like in the Russian army will be welcomed in Kyiv with flowers by the population? Who here is really living in a fantasy world?
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jivefive98
jivefive98
4 years ago
Im starting to wonder if this isnt a rehearsal for when peak oil really starts up and the governments of the world are causing this and wanting to see just how mad people get.
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JRM
JRM
4 years ago
Reply to  jivefive98
Biden actually admits to this on Monday!!!
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Doug78
Doug78
4 years ago
Russian oil and gas is the most expensive in the world because it comes with a very high cost in that to enjoy it you have to give up your liberal-democracy political system while remaining economically dependent of the whims of a power that has shown time and again that what you have is theirs if they want it. Europe diversifying away from Russia is just a normal repositioning of their energy supplies away from a dangerous and unreliable supplier towards a mix of other suppliers none of which would have a dominate position with them as did Russia. Russia lost a golden client, one who pays on time and with hard cash and who also invested a lot upgrading Russian industry. All those companies just walked away and what is amazing they walked away not because they were told to but because their employees, their shareholders and generally the public doesn’t want to have any dealings with Russia anymore. When a supplier screws you over you walk away and don’t look back.
Russian oil production is down 9% and the latest measures will cut it down more. The Russians already have to offer discounts of $30 or more to sell their oil. They say that they will sell less oil but since the price is higher they still come out fine. However oil price spikes since the 1970’s are always followed by oil busts as more supply comes online and these busts last years and there is no reason for it to be different this time.
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Maximus_Minimus
Maximus_Minimus
4 years ago
Reply to  Doug78
According to MSM, the Ukrainian forces will soon be in Moscow, and then the sponsor of this war, the USA will inherit all that mess you keep writing about.
What’s in it for you?
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Doug78
Doug78
4 years ago
Reply to  Maximus_Minimus
Have you tried writing a serious comment? I see the Minimus and none of the Maximus.
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FromBrussels
FromBrussels
4 years ago
Reply to  Doug78
…must be russian too
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Doug78
Doug78
4 years ago
Reply to  FromBrussels
You and him should get a room.
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RonJ
RonJ
4 years ago
Reply to  Doug78
An EU system that requires all 27 to agree, is not a democracy.
“However oil price spikes since the 1970’s are always followed by
oil busts as more supply comes online and these busts last years and
there is no reason for it to be different this time.”
Except, climate change. I read they are cutting down the Fairy Tail Forest to put up a wind mill forest. Won’t be able to see the forest, for the windmills.
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Doug78
Doug78
4 years ago
Reply to  RonJ
The EU is a federation made up of democracies except for Turkey which is a flawed one. That explains the violent reaction to Russia’s invasion. If the EU was made up of authoritarian regimes similar to Russia’s then they would have made a deal like Nazi Germany and Stalin’s USSR did on September 1, 1939 where Hitler invaded Poland from the West and Stalin from the East dividing up Poland and making it disappear as a country. Stalin then supplied the Nazis with all the oil and commodities they needed to invade Western Europe. The EU however is made up of liberal democracies that remember that era and don’t want to live through that again hence their strong reaction against and desire to make Russia’s gambit fail.
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RonJ
RonJ
4 years ago
Reply to  Doug78
Being made up of democracies means nothing when it takes all 27 to agree. One no vote blocks a majority.
Clinton meddled in the 1996 Russian election, to get Yeltsin re-elected. Is that what liberal democracies do, meddle in other country’s elections?
Would Putin be in office if Yeltsin had been defeated in 1996?
Maybe you aught to think about the violent reaction to the overthrow of Yanukovich. It was after that, everything else occurred.
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Doug78
Doug78
4 years ago
Reply to  RonJ
“Being made up of democracies means nothing when it takes all 27 to agree. One no vote blocks a majority.” That’s called consensus. It is an agreement between members and is the opposite of coercion which is Russia’s speciality throughout its history. Another aspect of the Russian spirit is to blame others for their own shortcomings and problems.
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RonJ
RonJ
4 years ago
Reply to  Doug78
Coersion built the United States. The America’s were occupied when the first European explorer/settler set foot on America.
The infant U.S. considered it had some entitlement of manifest destiny. The U.S. went to war with Mexico to coerce what became New Mexico, Arizona, California, from Mexico. Then there were the Indian wars, which coerced the first Americans. Someone left their heart at Wounded Knee.
At one time Hawaii had a king and queen. The first U.S. military action in Korea, was to coerce the Hermit Kingdom to allow trade with U.S. businesses.
Oh, and then there is that U.S. general that said war is a racket.
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Doug78
Doug78
4 years ago
Reply to  RonJ
I see that you fail to understand what a free association of liberal democracies actually means let alone how it operates. It’s a common mistake leaders who revel in coercion and who control their countries by those means make and Putin is a typical example. I am sure he didn’t foresee the pitiful performance of his armed forces, the level of sanctions put on Russia, the rearming of Germany, the expansion of Nato on his borders and the extreme diplomatic and economic isolation of the country his actions brought.
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FromBrussels
FromBrussels
4 years ago
Reply to  Doug78
STOP talking bs , Russian oil and gas was NOT expensive and extremely RELIABLE…. untill your criminal warmonging nation decided that Russia is too big and too rich a nation and should be carved up allowing your crumbling, over the eyeballs endebted ’empire’ to take advantage(steal) its immense riches …..and btw, why would Russia mind giving a 30$ discount on a 120$ soon 150$ oil a barrel?? ….Russia , unlike our western, european rather, nations don t have to support worthless (magreb) immigrants, refugees expecting and effectively getting paid for idling, taking advantage of our TOO generous social networks…and now we even enjoy 6 million (and ticking) Ukrainian refugees expecting heaven on earth in our idiotic regions …..the future looks great in fn Europe …..I d say, not for the first time, YANKEE GO HOME !
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Doug78
Doug78
4 years ago
Reply to  FromBrussels
“Russian oil and gas was NOT expensive and extremely RELIABLE” Really? It’s expensive and unreliable because you have to go along when Russia invades your neighbor and wants it to disappear as a country and a people. That cost is way too high.
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FromBrussels
FromBrussels
4 years ago
Reply to  Doug78
Who really gave a sh$t about utterly corrupt basket case Ukraine till Vicky Nuland-fck Europe told us we should give a sh$t ?! … armtwisting the EU into doing so…..because the US of A could shut down the US$ ticket window leading to the failure of big european banks ….like they re doing with Russia these days….it is almost incredible you re so ignorant ….are you really ?
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JRM
JRM
4 years ago
Reply to  Doug78
I see that you are buying what the west INTEL agencies are feeding the MSM!!!
There isn’t going to be an oil bust, US is not increasing production!!!!
I’m sure you are one of the brilliant analyst, who predicting oil was going to $10 a barrel a few years ago??
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Doug78
Doug78
4 years ago
Reply to  JRM
You hope there won’t be an oil bust because when it happens Putin will not have the money to subvention the regions or pay for services.
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Jojo
Jojo
4 years ago
There are some global safety and political situations that are more important than economic cost. Putin/Russia’s invasion of Ukraine is one of them. It is sad how many are unable to see this. Possibly an IQ deficiency?
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Dutoit
Dutoit
4 years ago
Reply to  Jojo
And US invasion of Irak ?
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Jojo
Jojo
4 years ago
Reply to  Dutoit
Who cares about Iraq? That was then, this is now. Iraq is yet another ME camel jõckey country with nothing to offer the world outside of polluting oil/gas.
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Dutoit
Dutoit
4 years ago
Reply to  Jojo
This kind of conceited and arrogant thought is the reason why now the west (US, UE and vassal) is isolated
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Jojo
Jojo
4 years ago
Reply to  Dutoit
The biggest consumer blocs in the world are isolated? Seriously? OK, let’s see how much product China can sell to Africa or South America. [lol]
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TexasTim65
TexasTim65
4 years ago
Reply to  Jojo
The exact same argument applies to the Ukraine. What exactly does it offer other than some Wheat for export (which the US decidedly doesn’t need)?
Once you go down the path of ‘what do they offer’ you can pretty much write off 90% of the worlds countries as not offering anything useful to the USA.
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FromBrussels
FromBrussels
4 years ago
Reply to  Jojo
the ‘IQ deficiency’ is definitely at the other side of the equation …..unlike you, me and many others with me, are able to SEE and understand what’s really going on … that s the difference between idiots relying on CNN, WP, NYT and other fake news outlets compared with smart people doing some homework which is actually a few clicks away these days …..I recommend you read the american “Stephen Lendman blog’ for a change ….INTERESTING to say the least ….
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Lisa_Hooker
Lisa_Hooker
4 years ago
Reply to  Jojo
Exactly. We must support Ukraine fighting the Russians until every single Ukrainian is dead. No price is too high.
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JmagY
JmagY
4 years ago
Well, you did get rid of the mean tweets and the “bad” policies of 45. How do you like what you asked for?
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FromBrussels
FromBrussels
4 years ago
What to expect from a totally worthless circus called the fn EU ! Von der fn Lying Ursula…. how this fn c$nt got democratically elected into her ‘leading’ position is actually a big mistery for me, not to mention the other presidential idiot, Charles Michel , a complete failure on a belgian national scale, undoubtedly thanks to his father, Louis Michel, who was quite a good belgian politician of the old guard ….The unfunctionable EU is definitely a asylum for failed politicians, lining their pockets in the last stage of their useless political careers…..Once again , SLAVA ROSSIYA, I do hope their admirable, rational, phlegmatic leader, Putin, gets away with his totally justified objectives, then US’ CRIMINAL hegonomy has definitely gone too far ….A unipolar world is not desirable at all !
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Doug78
Doug78
4 years ago
Reply to  FromBrussels
I suppose you still think Putin is playing 3-D chess and this is part of his master plan. It seems to me that Putin really doesn’t know what is going on within and without his country. Could it be that he just screwed up badly and doesn’t have a workable plan?
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Zardoz
Zardoz
4 years ago

Oil is finite. We can deal with this now, or fund Russia conquering Eastern Europe and then deal with this.

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Jackula
Jackula
4 years ago
We have certified morons running the western countries. Stupid moves on top of stupid moves. The war in Ukraine was completely avoidable, the sanctions are having huge blowback, and it’s highly probable more people will starve to death than died from the pandemic.
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Jojo
Jojo
4 years ago
Reply to  Jackula
“The war in Ukraine was completely avoidable”
Yes, by Russia. All they had to do was not invade Ukraine.
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RonJ
RonJ
4 years ago
Reply to  Jojo
It was avoidable by Ukraine.
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Jojo
Jojo
4 years ago
Reply to  RonJ
By kowtowing to Russian desires? Ukraine is an independent, sovereign country that does not need to do what some other country demands. If Russia was unhappy, they could have cut off their oil/gas, recalled their ambassador, stomped their collective feet but an invasion of Ukraine with wanton destruction for no good reason and killing so many civilians, again with no good reason other than to inflict terror is a “bridge too far”.
Try using your noggin!
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RonJ
RonJ
4 years ago
Reply to  Jojo
“Ukraine is an independent, sovereign country that does not need to do what some other country demands.”
“Yats is acceptable to us.” Ukraine should not do what some other country wants.
McCain should not have meddled in Ukraine.
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whirlaway
whirlaway
4 years ago
Reply to  Jojo
“Ukraine is an independent, sovereign country that does not need to do what some other country demands.”

So the US is not some other country?! Is Ukraine a part of the US? No country has interfered in Ukraine as much as the US has over the last 10+ years.

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Webej
Webej
4 years ago
Reply to  Jojo
Ukraine is not a sovereign but a puppet of the USA, otherwise they would not have gotten into this war.
Neither are NATO countries sovereign: For instance, the Netherlands are not allowed to let ASML sell advanced lithographic installations to Chinese chipmakers. In every other Euro country, there are similar examples of extra-territorial jurisdiction on business, never mind politics, foreign policy, and military matters.
Ukraine could have agreed to the ceasefire proposed by Russia Feb 23 to sit down and discuss the borders of LDNR. Instead they increased the shelling of Russian civilians and Russian peace-keepers that had just shown up in Donetsk. Of course they could have implemented the Minks accords, which were a UN resolution, signed by themselves, the LDNR, Germany, and France. Then the LDNR would have been a Ukrainian autonomous subject under a federated Ukraine.
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Zardoz
Zardoz
4 years ago
Reply to  Jojo
But… it’s a CONSPIRACY! Russia was under existential threat! Thousands of nuclear weapons was simply not sufficient to guarantee their sovereignty in the face of their puppet getting booted out of office in a free election! Stupid, stupid Biden!
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Casual_Observer2020
Casual_Observer2020
4 years ago
At some point, spiking prices lead to an economic crash.
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Lisa_Hooker
Lisa_Hooker
4 years ago
Reply to  Casual_Observer2020
Well, it could lead to printing more money to pay the prices.
Printing money is cheap.
Especially with computers instead of printing presses, ink and paper.
It might work for a while longer.
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Christoball
Christoball
4 years ago
The Black Swan Event has arrived. Europe has just performed harikari. No amount of apple pie or baseball can save the situation. Even Harry Caray himself could not have predicted the finish to this game. There will be a financial domino effect without even a shot will be fired against the west.
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Lisa_Hooker
Lisa_Hooker
4 years ago
Reply to  Christoball
No one as yet has pointed out that the NATO countries are sending their Russian 152mm weaponry to Ukraine to be blown up. This will require the West to replace all these armaments with new NATO 155mm weapons manufactured by the USA, Britain, Germany, Israel, &c, &c. They are likewise dumping obsolete NATO 155mm ammunition. The next few years will be great for the West’s arms makers.
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Billy
Billy
4 years ago
So if sanctions don’t help stop Russia from taking over countries, killing people, and destroying freedom, what do you think would work?
We all know that sacrifices must be made in times of war. Paying double for gas is nothing compared to what the citizens have lost in Ukraine.
We all should come together and fill those pipelines with concrete. Teaching every country how to become energy independent in an environmentally friendly way. It must be obvious that if Russia feels OK with killing innocent people, they must not care about the environment. So why do we allow anyone to buy their oil?
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Christoball
Christoball
4 years ago
Reply to  Billy
Let us not forget that Viet Nam and Iraq were the most environmentally friendly wars of all time. Agent Orange and Depleted Uranium were just window dressing to stop communism and weapons of mass destruction.
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Casual_Observer2020
Casual_Observer2020
4 years ago
Reply to  Billy
I have a better idea. Give Ukraine weapons that can reach Moscow. One missile fired in an open field near Moscow would send a message. I think its time to call Putin’s bluff. There is no way he will do anything than retreat and resign because he would know it means the end of Russia as he knows it.
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Dutoit
Dutoit
4 years ago
Reply to  Casual_Observer2020
I think that in this case Russian missiles could reach the country that gave the weapons. This would be the beginning of a much more dangerous war. This is why US sends MLRS only with short range munitions.
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whirlaway
whirlaway
4 years ago
Reply to  Casual_Observer2020
If you launch a decapitation strike on Russia, the Dead Hand strategy would automatically be engaged. Don’t think that you will be eating Cheetos and watching the daily crap on CNN/MSDNC after a strike on Moscow that kills its leadership!

Sheesh! What an insane bag of crazy sh*tlibs! And to think that these turds were wetting their pants that *Trump* would press the red button…

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grazzt
grazzt
4 years ago
Reply to  Billy
Umm, Why do we allow anyone to buy oil from Saudi Arabia? Obviously they’re killing as many people as Russia and they don’t even pretend to be a democracy? Aside from that, the US, EU, and NATO have killed and displaced multiple times as many people as Russia has in the past 20 years. Should we all be banned from selling products around the globe?
The only reason sanctions are even an option is because the US and UK control a large proportion of the banking industry and the US Dollar is the currency of choice for making transactions. Sanctions are simply another form of warfare (economic), similar to blockades of a country.
I just love the tone of your comment as well: “Why do we allow…”, so in your mind the US or maybe simply the West, gets to determine what every other person on the planet is allowed to do. Nice to know you think we have the moral authority to hand down these edicts especially when there is the obvious double standards when it comes to Israel and US allied nations vs. the remaining ‘non-aligned’ states.
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Jojo
Jojo
4 years ago
Reply to  grazzt
SA killing as many as Russia? Let’s have a cite please, otherwise you’re just farting wind.
Once we get fusion power commercially available (possibly by 2030, just 8 years away), SA will revert back to what it was 100 years ago – a bunch of nomads riding around deserts on their camels because outside of oil, they don’t have much of anything else to offer the world.
The old saying is “People in glass houses shouldn’t be throwing rocks”.
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bobcalderone
bobcalderone
4 years ago
Reply to  Jojo
What’s the saying about fusion power? “It’s the energy of the future — and it always will be.”
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Jojo
Jojo
4 years ago
Reply to  bobcalderone
Watch the future leave you behind.
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Webej
Webej
4 years ago
Reply to  Jojo
Just in Yemen alone (not counting funded insurgencies in Syria or elsewhere), 100× as many deaths in Yemen as civilians in Ukraine.
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Jojo
Jojo
4 years ago
Reply to  Webej
We’re leaving Yemen to be fought over between SA & Iran. We can’t be everywhere.
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Webej
Webej
4 years ago
Reply to  Jojo
Saudi assault on Yemen would be over tomorrow without UK/US help.
Iran didn’t start supporting Houthi’s until they were almost lost, and is a trickle in comparison to Western involvement.
Who else will help the Houthi’s?
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Lisa_Hooker
Lisa_Hooker
4 years ago
Reply to  Jojo
Once we get anti-gravity and time travel we won’t need all these windmills.
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Billy
Billy
4 years ago
Reply to  grazzt
-When I said “We”, I meant free, 1st world countries. The one’s that are supposedly in charge. The one’s who decide together what’s good and what’s bad.
-No, we shouldn’t ban ourselves because we only kill the bad guys.
-Well, I think we should all make the rules clear on what’s acceptable and what’s not.
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Lisa_Hooker
Lisa_Hooker
4 years ago
Reply to  grazzt
Having 10 aircraft carrier battle groups around the world helps almost as much as owning the banks. And the 800 foreign military bases. My strength is as the strength of ten because my heart is pure.
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Billy
Billy
4 years ago
Reply to  Billy
So far I’ve only read a bunch of disagreeing. This isn’t a Reddit forum with teenagers.
So if sanctions don’t work, what’s your suggestion?
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SleemoG
SleemoG
4 years ago
“War is the health of the State.” — Randolph Bourne
Sanctions, and the skyrocketing prices they bring, are a feature, not a bug.
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RonJ
RonJ
4 years ago
“Price of Crude Jumps as EU Foolishly Doubles Down On Sanctions”
Don’t they want people not to use fossil fuels, anyway? Pricing them out of reach is a good way to cut their use. Just pay no attention to the collateral damage, as Fauci did with Gain of Function research.
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JmagY
JmagY
4 years ago
Reply to  RonJ
No, they want US to use insufficient and expensive alternatives. THEY are perfectly happy using fossil fuels, eating real beef, traveling in private jets, etc. Surely you remember, some animals are more equal than others…
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shamrock
shamrock
4 years ago
I don’t think anyone wasn’t aware oil prices would rise as a result of sanctions. Maybe, like trade wars, the idea is to inflict more pain on them than on you. Russian inflation is running 16% and GDP -8%, EU has 8% inflation and GDP +3.2%.
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8dots
8dots
4 years ago
Brent isn’t NatGas. Excess Russian Brent will be sold at lower prices to China, India… Brent future : failed to close > Mar 24 high. Turtle speed up.
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Webej
Webej
4 years ago
Reply to  8dots
Brent is a North Sea blend.
The Russians sell Ural-grade crude.
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LPCONGAS99
LPCONGAS99
4 years ago
great info, thanks Mish
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davidyjack
davidyjack
4 years ago
Mish: Would you advocate trading with any and every country? No matter what the country did? Is there some limit?
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Dutoit
Dutoit
4 years ago
Reply to  davidyjack
After Viet-Nam, Irak, and many others, will there be any country trading with US ?
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whirlaway
whirlaway
4 years ago
Reply to  davidyjack
Are you objecting to the US buying oil from the Saudis? Looks like they haven’t yet crossed the limit, huh?
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davidyjack
davidyjack
4 years ago
Reply to  whirlaway
The question was for MISH!
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whirlaway
whirlaway
4 years ago
Reply to  davidyjack
And my question was for YOU!
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Dutoit
Dutoit
4 years ago
“Russian shopping centers invite Turkish retailers”
This should not contradict Turkey’s membership in NATO, since Turkey’s takeover of one third of the territory of another country in NATO did not.
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PapaDave
PapaDave
4 years ago
Yet another decision that we, as individuals, cannot do anything about. All we can do is look for the investment opportunity that this decision presents to us. Anyone here have any suggestions? What to buy. What to sell. What to short.
I am looking for some clever ideas from many of the smart people here.
The obvious? is to hold on to those oil stocks that many here own (or is it?). But I am sure that there are some other great suggestions that some can think of.
Thanks to all in advance.
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killben
killben
4 years ago
Even Putin could not have imagined that US, UK and EU will do such a good job of digging their own grave.
I am glad all the same as these actions will roast the “Arsonist & Firefighter” central banks (especially the big daddy in the US and not any meaner one in the EU with negative rates) alive.
I hope they keep at it.
This trio keep proving Einstein right again and again – The difference between genius and stupidity is genius has limits. Just when you think they cannot get any more stupid here they go. What next?
Also since these jokers adhere to another Einstein theory of insanity, they will find ways to do more.
I hope the inflation burns the central bankers. I would welcome it.
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KidHorn
KidHorn
4 years ago
I think the end result of all this will be Germany becoming an ally with Russia and China. They’ll tire of the US and kick us out. Since Germany effectively owns mainland Europe, the rest of Europe will follow. The US will be stranded on an island with Canada and Mexico. Makes too much sense not to happen.
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Dutoit
Dutoit
4 years ago
Reply to  KidHorn
Probably not with Mexico, which decided to keep good relationship with Russia.
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davidyjack
davidyjack
4 years ago
Reply to  KidHorn
A western democracy cannot trust a Putin led Russia. He lies so damn often and invades his neighbors!
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whirlaway
whirlaway
4 years ago
Reply to  davidyjack
LOL. As opposed to the US that lies all the time and invades countries many time zones away??!!
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TexasTim65
TexasTim65
4 years ago
Reply to  KidHorn
Yup. Most of the worlds countries have not followed the US sanctions and in fact continue to do business with Russia. So in reality, its Canada/US and Europe that are cut off from the rest of the world and not the other way around.
The fact that the rest of the World is not following sanctions should be a GIANT wakeup call to the US that the world no longer sees them as a leader and someone to be blindly followed for the ‘greater good’ of the world. Countries are now making choices based on what’s best for them/their people and not Uncle Sam.
Ukraine also seems to be nearing the end militarily and it’s quite possible the conflict will be over by the end of summer (if not sooner). That’s when things will get really interesting (ie how long will sanctions remain once fighting stops).
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Lisa_Hooker
Lisa_Hooker
4 years ago
Reply to  TexasTim65
How expensive will it become to turn Euros into LNG?
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Webej
Webej
4 years ago
Reply to  Lisa_Hooker
Very. LNG compression, transit, and decompression entails enormous losses of energy (LNG), not to mention the hundreds of billions in capital expenses to amortize over 30 years
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