• About
  • Advertise
  • Careers
  • Write for us
  • Contact
  • Terms of service
Saturday, May 28, 2022
The Millennial Source
TMS
Home WORLD

The global dilemma when it comes to Russian oil

byThe Millennial Source
March 7, 2022
in WORLD
Oil

FILE PHOTO: A 3D-printed oil pump jack is seen in front of displayed stock graph in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration

Share on FacebookShare on TwitterShare on Linkedin

One of Russia’s biggest exports, oil, has taken a pretty big hit because of the international reaction to the invasion of Ukraine.

In the EU, there’s still some division about exactly how to get away from Russian oil. Some countries, such as Poland, are pushing for an all-out ban. Others, like Germany, say a decision that powerful can’t be made immediately. However, they did agree on reducing dependence on Russian oil by 80% this year.

In the US Congress, lawmakers are working to ban imports of Russian oil to the US, which only gets about 3% of its oil from Russia. 

Companies are also avoiding Russian oil, afraid they’ll run into sanctions or they’ll be “canceled” by everyone else. There is also an overall concern that once they buy it, countries could ban the oil, and it could be hard to sell. 

This is what happened with energy company Shell after it bought some heavily discounted Russian crude oil on Friday.

“I am told that Shell discretely bought some Russian oil yesterday. One question to @Shell: doesn’t Russian oil smell Ukrainian blood for you?” tweeted Ukraine’s Minister for Foreign Affairs, Dmytro Kuleba.

I am told that Shell discretely bought some Russian oil yesterday. One question to @Shell: doesn’t Russian oil smell Ukrainian blood for you? I call on all conscious people around the globe to demand multinational companies to cut all business ties with Russia.

— Dmytro Kuleba (@DmytroKuleba) March 5, 2022

“The world will judge them accordingly. And history will judge them accordingly,” Kuleba also told CNBC’s Hadley Gamble.

A boycott is also looming. “Boycott Shell, they purchased at $28.5 below market price per barrel profiting from the war consequences!” tweeted hacker group Anonymous.

In a statement, Shell defended its “difficult” decision to purchase the oil, saying it really had no other alternative. “We didn’t take this decision lightly and we understand the strength of feeling around it.”

oil

“We will continue to choose alternatives to Russian oil wherever possible, but this cannot happen overnight because of how significant Russia is to global supply,” the company said. Shell also noted that it would give profits from its Russian oil supply to a “dedicated fund” for humanitarian efforts in Ukraine.  

Prices worldwide for gas have skyrocketed to record highs, so countries are coordinating oil sales from their own oil piggybanks (otherwise known as strategic petroleum reserves (SPRs)) to try to cushion the price.

But, according to a source from OPEC+, “The problem is the current market conditions have nothing to do with OPEC policy/policies. It has nothing to do with supply (production) shortfall.”

“The bigger picture is that supply disruptions are getting worse,” said Andrew Lipow, president of Lipow Oil Associates in Houston, Texas. “Nobody wants to touch anything related to Russia.”

You drive the stories at TMS. DM us which headline you want us to explain, or email us.

Like TMS? Subscribe to our free daily newsletter

. . .

Related

Tags: economic policysuperpower relations
ShareTweetShare

Latest Posts

China proposal

China proposes economic and security agreement to 10 Pacific nations

May 27, 2022

Singapore Prime Minister Lee Hsien Loong warns against excluding China from regional summits

May 27, 2022
Biden Asia

Several key takeaways from Biden’s trip to Asia

May 25, 2022

US would respond “militarily” if China tries to take Taiwan by force, says Biden

May 24, 2022

Sri Lanka’s new prime minister warns country is down to its last day of petrol

May 18, 2022

EU considers making Russian oligarchs pay to rebuild Ukraine

May 18, 2022

CCP releases previously unpublished comments by Xi about wealth in China

May 16, 2022

After Russia’s invasion of Ukraine, Finland and Sweden make moves to join NATO

May 16, 2022

The EU pushes toward phasing out Russian oil but faces opposition

May 10, 2022

SUBSCRIBE TO THE TMS NEWSLETTER

By providing your email, you agree to our Privacy Policy

The Millennial Source Ltd. 2021

No Result
View All Result
  • Your daily briefing
  • About us
  • Explore
    • Startups
    • Climate change
    • Tech giants
    • Crypto
    • The future of work
    • Banking giants
    • Economy
  • Lifestyle
  • TMS archives
  • Write for us
  • Contact
  • Privacy Policy & Terms

© 2022 The Millennial Source Ltd.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

 

Loading Comments...
 

    string(24) "jsonld single post debug"
    The Millennial Source
    Powered by  GDPR Cookie Compliance
    Privacy Overview

    This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

    Strictly Necessary Cookies

    Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

    If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.