European gas prices likely to fall sharply this winter, says Goldman Sachs

[patman post]

Russia is still exporting its oil and gas, but at reduced prices that others are benefiting from.

And it seems Putin is deluding himself if he believes his current meeting with China's Xi is a meeting of equals...

"China and Russia often appear as a pair, two great authoritarian powers seeking to revise the international order. But theirs is not a relationship of equals," [Alexander Gabuev, a senior fellow at the Carnegie Endowment for International Peace, wrote in Foreign Affairs magazine], explaining that Beijing's dominance in its relationship with Moscow is only likely to grow as the war in Ukraine persists.

Chinese data showed this week that China is buying more of less expensive Russian energy supplies. Russia became China's top crude oil supplier from May to July, a volume amount that accounted for 19 percent of all China's crude imports, Reuters reported.

For liquified natural gas (LNG), China's imports from Russia rose 26 percent in the first seven months of this year compared with the same period in 2021. China's coal imports from Russia also jumped to their highest level in at least five years in July.

"China saved about $3bn in buying Russian oil versus other imports between April and July," Reuters calculated, noting that China paid about $708 per tonne for Russian crude while the value of imports from other importing countries was $816 per tonne.

And while the financial gains for China are obvious, Russia remains more reliant on the trade than China, analysts said.

"It is apparent that Russia can no longer rely on its major energy export markets in Europe for the foreseeable future, and the redirection of its energy and commodity exports towards the East will gather pace," Tilak Doshi, managing director of Doshi Consulting, told Reuters.

India, too, is reaping the benefits of cheap Russian energy, according to Reuters.

Rarely purchasing Russian oil in the past, India has now become Moscow's second-largest oil customer after China as Indian refineries have snapped up discounted Russian oil that has been shunned by Western countries.

https://www.aljazeera.com/news/2022/9/15/hat-in-hand-putin-meets-xi-at-summit-in-samarkand

[papasmurf]

https://www.theguardian.com/business/2022/sep/13/gas-prices-eu-fall-sharply-goldman-sachs-eu-russia

Well, that did not last long.

I wonder what the next crisis will be?

Personally, I would not believe any prediction by Golden Sacks.

[Borchester]

https://www.theguardian.com/business/2022/sep/13/gas-prices-eu-fall-sharply-goldman-sachs-eu-russia

Well, that did not last long.

I wonder what the next crisis will be?