#European #nonsense #India #buys #oil #Russia #resells #fuel #Europe #Insolentiae
The functioning of the European institutions is always very annoying since hypocrisy occupies a cardinal place there.
Here is an article from MarketWatch, a leading US financial news site, titled “Why India Is the Big Winner as EU Oil Ban on Russia Redraws Energy Trade Map”!
Come on, let me give you a quick recap.
Europe no longer buys Russian oil, nor diesel refined in Russia.
But we have the same number of trucks to operate and the same number of sales to fill every day.
Then suddenly India buys oil from the Russians at a good price.
India refines this oil and re-exports it to us…
But honor is safe.
We do not buy oil from the Russians.
“As the EU withdraws from Russian refined products, we increasingly suspect that India is becoming the de facto refining hub for Europe,” Michael Tran, global energy strategist at RBC Capital Markets, said in a note. on Tuesday.
This is all part of the seismic shifts taking place in the physical market for crude and refined products following the Russian invasion in late February and the rounds of sanctions imposed on Moscow.
Meanwhile, India’s new role comes from loading cheap Russian crude, which it has been refining at a breakneck pace and then exporting refined products.
India is buying record amounts of Russian crude at deep discounts, running its refineries above nominal capacity and capturing economic rent from exorbitant spreads and exporting gasoline and diesel to Europe. In short, the EU’s policy of tightening the screws on Russia is a political victory, but the unintended consequence is that Europe is importing inflation to its own citizens. This is not only an economic benefit for India, but also serves as an accelerator for India’s place on the new geopolitical map of oil trade. What we mean is that EU policy is making India an increasingly vital energy source for Europe. This has never been the case historically, and this is why Indian product exports have reached record levels in recent months.”
All this is absurd.
It’s not politics, not even with a lowercase p.
It’s pathetic.
It is myopic.
A war is not won by decreeing embargoes that one eludes.
Sad Europe with anxious leaders.
I can tell you that we will never win this war.
Carlos Sannat
“This is a ‘presslib’ article, that is, free to reproduce in whole or in part as long as this paragraph is reproduced below. Insolentiae.com is the site where Charles Sannat expresses himself daily, offering cheeky and uncompromising analysis of economic news. Thanks for visiting my site. You can sign up for the daily newsletter for free at www.insolentiae.com. »
Source MarketWatch.com here