Sorry, but for You, Oil Trades at $250 a Barrel

bloomberg.com

8 points·mooreds··9 comments

It was what everyone said they wanted until they got it and it was Vladimir Putin making all the money and using it to fund wars.

According to the story, the refinieries are making the money. Are you suggesting that Putin owns lots of refinieries?

According to this: https://oec.world/en/profile/country/rus#monthly-trade-lates... as of Jan 2022, Russia exports about 2x as much crude as refined product. A brief google didn't find later numbers.

Russian companies own (parts of) refineries abroad. I don't know whether there are many of them (and I suspect GP doesn't know either).

I know details about two such refineries, and in those two cases I suspect they're currently making a lot of money that will eventually be used to rebuild Ukraine.

That's probably part of the problem; I expect that refining is a bottleneck because of the legion of shutdowns that happened in 1q 2020.

I also suspect there's a lot of details that aren't mentioned in the article and we'll find out later. In particular I'd like to suggest that the pipeline network (or lack thereof) is functioning as a bottleneck in this case as it is in constricting new drilling.

Also, keep in mind the price of oil in 4q 2019 was roughly $ 60/bbl. This article is looking at spot market increases to make a narrative about refineries when the important bit is the 100% or so increase in one year in the non-spot/longer term market.

What was the other path to take? Let him take most of Ukraine and let the europeans keep sucking the Russian teat and stay weak?

I dunno. Stop pretending we're doing anything for the environment by burning Russian natural gas instead of Western-drilled natural gas, maybe?

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