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Another Loss for the US: Japan Breaks with Western Allies, Buys Russian Oil at Prices Above Cap

Discussion in 'Too Hot for Swamp Gas' started by Gatorrick22, Apr 3, 2023.

  1. Gatorrick22

    Gatorrick22 GC Hall of Fame

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    Is this action by Japan just "business as usual?" Or is the petrodollar in big trouble? The Biden administration is losing allies around the world and more an more countries are buying Russian oil in foreign (NOT the US dollar) currency. Global use of the American dollar is down to 69% from above 72%.

    This is a trend that is a direct result of the Biden administration's attack on domestically drilled oil.


    The international Group of Seven (G7) – an intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States – agreed on a price cap for Russian oil on December 3, 2022: $60 per barrel.

    However, one of the United States’ closest Asian allies is now purchasing Russian oil at prices above the cap, breaking with the sanctions imposed by US allies.

    Japan’s crude imports were exempted from the $60/barrel cap by the participating countries until September. Japan already purchased about 748,000 barrels of Russian crude in the first two months of this year at a price of about $70 per barrel.

    “Japan got the U.S. to agree to the exception, saying it needed it to ensure access to Russian energy. The concession shows Japan’s reliance on Russia for fossil fuels, which analysts said contributed to a hesitancy in Tokyo to back Ukraine more fully in its war with Russia,” the Wall Street Journal reported.

    Prime Minister Fumio Kishida of Japan was the last leader from the G7 to travel to Ukraine after Russia’s invasion, and Japan is the only country that has not supplied lethal weapons to the country.


    Another Loss for the US: Japan Breaks with Western Allies, Buys Russian Oil at Prices Above Cap
     
    Last edited: Apr 3, 2023
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  2. citygator

    citygator VIP Member

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    Charlotte
    How happy you must be. The US has options to make Russia uncomfortable. That’s it. We all know that. The only way Ukraine wins is if this drags on and the Russians get tired.
     
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  3. Gatorrick22

    Gatorrick22 GC Hall of Fame

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    Are you kidding me? I am NOT happy at all about all this.
     
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  4. jjgator55

    jjgator55 GC Hall of Fame

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    Ummmmm. The G-7 gave an exemption to the Sakhalin-1 and 2 projects over a year ago, so why is this even news? Japan has always had an oil and LNG problem, and was even a major reason Japan went to war with the U.S. in 1940’s. They are probably the most energy dependent country on the planet.

    Before the wingnuts start to celebrate they need to understand Japan gets less than 2% of its oil from Russia, all other sanctions are still in place, and Russia still considers Japan to be a hostile government meaning the sale isn’t guaranteed.
     
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  5. coleg

    coleg GC Hall of Fame

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    Don't get to upset, as usual GatePun, leaves out critical info the intelligent reader would consider. Japan is the world's 4th largest oil importer with 2,700,000 barrels a day. Of that in the first two months of 2023, they imported 12,500 barrels per day from a Russian co-op source that was incidentally produced with their natural gas. Less than 1/2 of 1% of their imports, as approved by the US since it was a by-product. A literal drop in the bucket, but works to rile the base. SMH
     
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  6. duggers_dad

    duggers_dad GC Hall of Fame

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    Another crack in the (far from united) economic war on the Russian people.
     
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  7. Gatorrick22

    Gatorrick22 GC Hall of Fame

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    One of the main reasons why the American dollar is still the global currency is because of oil... the "petrodollar" is going extinct and when that happens the value of the American/petrodollar goes down with it.

    Open your eyes and see what happening around the world. I know the Dems are pulling out all the distraction tricks with this new "trumped up" indictment of president Trump. But the world is right NOW using other currencies to buy oil, and the in the case of several of our former friends around the world are ditching the dollar for other currencies. And couple that with the fact that the CRIBS nations are looking for a new global currency is BAD NEWS for the American dollar.
     
    Last edited: Apr 6, 2023
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  8. ursidman

    ursidman VIP Member

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    Bug Tussle NC
    Last edited: Apr 3, 2023
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  9. oragator1

    oragator1 Premium Member

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    Like I have said, there isn’t a viable alternative. When there is, then posts like these might make more sense. But I posted the numbers in another thread, the most likely scenario is a decentralization of currency when appropriate. People will start to trade in local stuff. But the worlds reserves will be in dollars still, because we are the only currency that has sufficient amounts, transparency and liquidity to do so. If you think any western country wants their reserves held hostage by China if they invade Taiwan for instance, you’re not following the whole story. And that’s the bulk of the dollar’s power, people turn to it in uncertain times. Just like the last 3 years.
     
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  10. WarDamnGator

    WarDamnGator GC Hall of Fame

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    Just knew the OP had to be a half truth given the link is gatewaypundit... it's too bad Rick doesn't look for additional sources before posting their nonsense.
     
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  11. GatorFanCF

    GatorFanCF Premium Member

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    With $30 Trillion in debt, and counting, we should all be praying that the bulk of the world continues to use US Dollars. Or, perhaps the way we pay off the National Debt is to inflate the currency so that $30 Trillion = cost of a new car; and, therefore, we can pay it off easily.

    Foreign wars, debt, division at home, and invasion of home are great ways to kill a country.
     
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  12. dudehead

    dudehead Junior

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    I think China is the most energy (and food) dependent/importer on the planet.
     
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  13. oragator1

    oragator1 Premium Member

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    Our debt is entirely self inflicted. No one wants to make the hard choices, so they babble on about social issues (on both sides). Meanwhile, SS is going bankrupt, infrastructure is crap, an entire class of people are hooked on government benefits, countries around the world spend nothing on defense because we do it for them etc.
    It’s time for us to start facing our problems.
     
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  14. Gatorrick22

    Gatorrick22 GC Hall of Fame

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    Right now there isn't... but things are changing and fast. It's happening right now.
     
  15. Gatorrick22

    Gatorrick22 GC Hall of Fame

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    So, you think this story is made up? It's real news.

    Or... maybe it's real and a subject that the MSM doesn't want you to focus on... bad press for Biden is not in their best interest.


    Japan breaks with western allies and buys Russian oil above $60-a-barrel cap | Daily Mail Online

    Japan buys Russian oil above $60-a-barrel cap, breaking with US allies: report
     
    Last edited: Apr 3, 2023
  16. coleg

    coleg GC Hall of Fame

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    LOL Rick. Or maybe MSM reported it long ago without the hyperbole right-wing media uses to chum the base. Garbage in = garbage out.
    TOKYO, Dec 19 (Reuters) - Japan is sounding out major oil refiners about buying Russian ultra light crude from the Sakhalin-2 gas and oil project to ensure that the plant can continue to operate smoothly, two sources with direct knowledge of the talks said.

    The Sakhalin Island complex, partly owned by Gazprom (GAZP.MM) and Japanese companies, is vital to Japan's energy security as it accounts for 9% of the country's liquefied natural gas imports.
     
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  17. WarDamnGator

    WarDamnGator GC Hall of Fame

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    I’m not saying it not true, I’m saying if the US and it’s Allies made allowances for this with Japan as part of the deal to them to join the pact, than it’s not the fainting goat shocking betrayal of Biden you are trying to make it out to be.
     
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  18. l_boy

    l_boy 5500

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    Would somebody explain to me how two non US countries buying and selling oil in a currency other than dollars is supposed to be catastrophic for the US? Please be specific.
     
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  19. jjgator55

    jjgator55 GC Hall of Fame

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    My eyes have been open otherwise I wouldn’t know the dollar is the global currency because we have 75% of the gold supply, and oil has nothing to do with it. Good try though.
     
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  20. l_boy

    l_boy 5500

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    What I figured. Much wailing about loss of the petro dollar, but nobody can explain how reduced petrodollars will be detrimental.