jhungary
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Actually, if US wanted to lower oil price, they could by taxing the Oil Company and force them to drill into reserve and increase production. Which they are probably 1 or 2 months away from doing them. US oil production jumped about 1 million bbl per day, that's not remotely enough to go over the gapWhat most people don't realize is that sanctions boycotting Russian oil only helped Russia. The sanctions caused a big spike in oil price, and Russia is still able to sell its oil to nations not participating in the boycott such as China and India. They also require payments for the oil to be made in Rubles. So in the end Russia got a huge increase to their petro revenues as well as a strengthened Ruble (which also lowers their cost of imports). At the same time the sanctions pummeled the west since we're paying higher oil prices. If the West really wants to punish Russia, we should drop the sanctions and incentivize our oil industry to crank up production
The problem is, why Exxon, BP and Shell want to do it when they can sell oil now for $120-$130 per barrel, I mean, doing so will just shoot themselves in their own foot. And Biden is too weak to push these oil giant (at least for now), Biden administration would most likely need to do those measure closer to Mid-Term because they can't afford high gas price during Mid-Term. But right now, there are nothing they can do.
On the other hand, once the US did that. then Russia will suffer, it's not logical to have oil price persisted at $120 a barrel. That would inflate a lot of basic infrastructure. Which mean the US is going to move to produce more, and most likely force OPEC to do the same, once that is done, Oil price would come back down to around 80 or 90 per barrel. When that happen, it would be game over for Russia, see, right now Russia is discounting their oil to sell to India and China, you can do that when oil price is high, but once it get back down to below 100 a barrel, then discount will not make sense because you can't earn money if the oil price is low. On the other hand, once EU decouple Russia oil (2023-2024ish) there are going to be surplus that even India and China cannot handle (you are talking about 4 to 5 millions barrel a day) India and China will only buy what they need plus what they can stash, any more than that is just wastage.