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53 votes
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Why has Russia declined OPEC's request to cut oil production?

Disclaimer: I'm no expert, this answer is based on my modest understanding of the situation at play. The OPEC decision to cut oil production was meant to keep prices high: if every OPEC country were ...
Erwan's user avatar
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40 votes
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Why can't Hungary import oil from somewhere other than Russia without "ruin[ing] the Hungarian economy"?

All the refineries in Hungary (and in Slovakia) are calibrated to the Ural type of oil coming from Russia. This type is different from the Brent type of oil coming from North Sea, etc. Adjusting the ...
Adam Gyenge's user avatar
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40 votes
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ELI5: Why is Russia's requirement for oil to be paid in Roubles abnormal?

Because the contracts stipulated payments in other currencies (euros, dollars), not roubles. i.e. all your other arguments are superseded by the fact that these were not the contractual commitments ...
Italian Philosophers 4 Monica's user avatar
34 votes
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Fact-check: Has the US increased imports of Russian oil?

Sort of - this claim is based on the figures published weekly by the Energy Information Administration. For the week of 03/25/22, the US imported 100,000 barrels per day, up from 70,000 barrels per ...
CDJB's user avatar
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25 votes

Why has Russia declined OPEC's request to cut oil production?

The reason Russia didn’t want to do a production cut is because the US is not participating in this, since the US is also not part of OPEC and actually leaves all the oil production to market forces ...
Boris Dzhelali's user avatar
16 votes

ELI5: Why is Russia's requirement for oil to be paid in Roubles abnormal?

it is more normal/common than otherwise, in international trade, for the importer to pay for goods in the exporter's currency Not for oil in general (see "petrodollar") and also not for ...
against very long user names's user avatar
15 votes

Why has Russia declined OPEC's request to cut oil production?

The head of Rosneft, Igor Sechin, has long been convinced that the OPEC deal "plays into the hands of the United States" by making its shale oil industry profitable. Allegedly he finally managed to ...
Dmitry Grigoryev's user avatar
14 votes

Why can't Hungary import oil from somewhere other than Russia without "ruin[ing] the Hungarian economy"?

Ruin is relative. Hungarians would certainly take an economic hit. If you look at the oil pipelines in Europe, you can see that they are by and large going east to west, not north to south or south to ...
o.m.'s user avatar
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13 votes

How did US respond to the accusation of "stealing Syrian oil"?

From the New York Times it looks like United States has deserted its pivotal Kurdish ally and ceded most of the territory the Kurds had controlled to Syria, Turkey and Russia. Washington however would ...
Stančikas's user avatar
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12 votes
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Why didn't the Gulf countries diversify their economy in the last 70 years so that they can become less dependent on oil?

When your economy is based on a single commodity diversification is really difficult. There is one place in your economy where the money is, and the power follows the money. Anything else is going to ...
Paul Johnson's user avatar
12 votes

ELI5: Why is Russia's requirement for oil to be paid in Roubles abnormal?

Of course it is normal to try tricks to evade economic sanctions during economic war. How it could be else? You need to sell something for Russia first to get these roubles. With sanctions applied, ...
Stančikas's user avatar
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10 votes

Why didn't the Gulf countries diversify their economy in the last 70 years so that they can become less dependent on oil?

They Do. Saudi Vision 2030 is a strategic framework to reduce Saudi Arabia's dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, ...
Be Brave Be Like Ukraine's user avatar
10 votes

How much coal, oil, and natural gas has the U.S. imported from Russia in recent years?

EIA has these percentages for 2020, with Russia shown at 7% of total US petroleum imports: It's interesting that the US imported 7% of total oil from Russia, but that Russia didn't figure similarly ...
against very long user names's user avatar
10 votes
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Which countries have oil stockpiles?

The discrepancy between production and consumption is due to stock changes, additives, substitutions, and differences in accounting I took a look at Our World in Data's reports on total oil production ...
LShaver's user avatar
  • 1,765
10 votes

Why do Canadians complain more about cost of living than Saudis?

First, the cost to produce oil per barrel is vastly different. Alberta's oil has a pretty high breakeven cost to produce while Saudi's is the cheapest on the planet. Marginal Production Cost, 2014 (...
Italian Philosophers 4 Monica's user avatar
9 votes

Can taxes diminish Europe's dependency on Russian oil?

Can (higher) excise taxes, as well as taxes on cars with poor fuel economy, diminish the dependency of Russian oil? Taxes create incentives to make different economic decisions than would be made, ...
ohwilleke's user avatar
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8 votes

Why has Russia declined OPEC's request to cut oil production?

One other point not mentioned is Syria. With Russia and its allies gaining the upper hand over Saudi supported forces, this could be considered an opening up an economic front in that conflict.
James's user avatar
  • 181
8 votes

Why is Europe (at least France and the UK) less dovish than the US administration on Ukraine striking Russian oil refineries?

Joe Biden currently faces a heavy re-election battle this year, and petrol prices are already on the rise. And nothing terrifies a sitting American president more than a surge in pump prices during an ...
Stančikas's user avatar
  • 22.4k
7 votes

Saudis vs Russia on oil: Saudis wanted lower production, but are now doing the opposite. What's going on?

Game theory point of view We can view it from the game theory point of view, with a simple prisoner's dilemma situation. Let's keep it simple with only two oil producers, Saudi Arabia and Russia. ...
Kepotx's user avatar
  • 329
7 votes

Why did Saudi Arabia refuse to increase oil production to counter Russia when USA asked them to in February 2022?

Profits. As was demonstrated by the 2020 Russia–Saudi Arabia oil price war, a signficant production increase would lead to a market crash, and require significant corrections by all producers to ...
Danila Smirnov's user avatar
6 votes

Did the sanctions against Russia take into account that oil price might neutralise their effect?

Yes. That is why there are no comperehensive sanctions on oil and gas yet. To make this work, there would have to be sanctions on customers of Russian oil. According to Reuters: Asked if the United ...
o.m.'s user avatar
  • 109k
6 votes

Objective arguments to support assertions that Saudi Arabia is "siding with Russia" and not simply just exercising sound fiscal policy?

While the "oil price cap" for Russia is applied just as a sanction, and (from the view point of Ukraine) seems fair this way, other oil producers may have concerns that upon success this cap ...
Stančikas's user avatar
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6 votes
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Who officially owns the fuel tanks in Gaza that Israel said (around 26 Oct 2023) have half a million liters of fuel?

From a CNN Live News feed, 9:33 p.m. ET, October 26, 2023 — On Gaza's dwindling fuel supplies: Hagari also reiterated that Israel would not allow fuel into Gaza for now, saying that Hamas’ arrays are ...
Rick Smith's user avatar
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5 votes
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What safeguards have allowed Russia to be immune to/undeterred by sanctions enacted thus far?

Very broadly: Over a decade, Kremlin policy has carefully reduced domestic public and private sector debt and allowed the central bank time to build a war chest of foreign assets large enough to ...
blobbymcblobby's user avatar
5 votes

Did the sanctions against Russia take into account that oil price might neutralise their effect?

As far as I am aware, there are no sanctions on oil or gas yet. Instead, the sanctions come in two flavours: one is the part where Russian banks are cut off from the international banking system and ...
Jan's user avatar
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5 votes
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Did US threaten Iran to prevent its tankers delivering oil to Venezuela?

Not as far as I can tell. The closest I can find is this statement in which the US criticise Venezuela for making the deal: US State Department spokeswoman Morgan Ortagus said on Sunday: "...
F1Krazy's user avatar
  • 3,430
5 votes

Which countries have oil stockpiles?

what are barrels of oil that are already extracted and sitting around waiting to be used called These barrels of oil can also be called "oil reserves". You might need context to ...
Allure's user avatar
  • 35.1k
5 votes

Which countries are affected by Russia's decree banning oil sales to them?

They haven't said yet. As of Dec 28th, 2022, we don't know. The decree is On the application of special economic measures in the fuel and energy sector in connection with the establishment by some ...
Schwern's user avatar
  • 5,244

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