Comment by OgsyedIE
4 days ago
It won't help with oil. The Permian's breakeven prices have crept upwards and, because VZ crude grades are high-sulfur, the US refinery complex can't absorb it without retooling away from the plants specialised for the low-sulfur Permian output.
Possibly dragging supply down, with no net effect at best.
>90% of Venezuelan crude has been refined in China in recent years.
This is going to hurt China economically, and in a way that isn’t going to be seen as targeted at China or unfair by international community.
Russia’s production and refining capacity has been seeing attrition from Ukraine’s efforts. They’re producing less oil, selling it for less, and for rubles that each buy less.
I’ve said before on HN that I thought Venezuela was intended to soak up Russian resources - this is just the next step.