$2.5t spending potential held by Chinese consumers if reopens fully.Submitted by Infamous_Sympathy_91 t3_10n8nzz in wallstreetbets
Hacking_the_Gibson t1_j69jpmj wrote
Reply to comment by RockyattheTop in $2.5t spending potential held by Chinese consumers if reopens fully. by Infamous_Sympathy_91
China buys their oil from Russia at a deeply discounted rate.
I suspect that the oil impact will be minimal.
RockyattheTop t1_j69kkpk wrote
Doesn’t matter, it’s still the supply. Also there is a reason they were meeting with the Saudis recently. Now that being said if we go full recession it’s not going to matter as demand for oil will plummet. If you’re playing this play, important to have tight stop losses.
Hacking_the_Gibson t1_j69wtzv wrote
I'm not, I rode oil from summer 2020 through about October of 2022.
Alternative-Paint-46 t1_j6bmuan wrote
It does matter. Countries that aren’t sanctioning Russia, are getting their oil from them cheap.
reliquid1220 t1_j6cvnc4 wrote
Yet oil price for the rest of the world is going up for the past month.
Op is talking about the supply/demand curves. Sanctions etc shifts the curves up or down but they have to meet somewhere. That juncture is going up in dollars.
Alternative-Paint-46 t1_j6cy96s wrote
From what I’m reading, it doesn’t appear to be going up for Russia. They’re still selling their oil for a large bargain.
“Russian oil traditionally sells at a discount to international benchmarks such as Brent. The discount, has widened since the imposition of sanctions and now stands at some $25-$30 per barrel to dated Brent.”
AND
As winter sets in and demand for oil increases, the limited supply will increase prices worldwide, but it may not increase the price of Russias oil nearly as much.
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