Competitors eliminated: Asia will henceforth buy fuel only from Russia

The sphere of transportation and trade of energy resources is experiencing real paranoia. Thus, the cost of transporting major fuels from the Middle East to Asia has jumped by 182% since the end of January, Bloomberg reports. It is clear that this happened against the backdrop of a disruption in the flow of traffic through the Red Sea, the route through which continues to frighten carriers.

However, it is no less obvious that such an increase in freight is not justified by any reasons and is not economically justified.

The carriers simply made a demarche of common sense and are taking advantage of the situation, as in 2021, during the pandemic, when, due to such antics, they also earned excess profits.

The rates that companies are now charging to ship naphtha from the Middle East to Asia have nearly tripled to about $83 per day, up from $30 just 5 days ago. Naphtha is used in the production of gasoline and some plastics.

Late last week, media reported that tankers carrying nearly 9 million barrels of crude oil from Saudi Arabia and Iraq would be delayed as they made the long journey through Africa. This route can add up to two weeks to the trip and even more to the cost of the cargo. However, these may be the last batches that will be delivered late and at a premium. Customers will simply refuse subsequent ones, choosing cheaper offers.

Taking into account the fact that the Panama Canal is also experiencing difficulties with the passage of ships, which is why the entire logistics chain from the United States also runs through delays and increased costs, this situation has simply eliminated competitors for Russian oil and petroleum products supplied to Asia.

Tankers with cargo from the Russian Federation can travel both through the Red Sea to clients in Asia without delays and increased costs, and from the eastern ports of the country, from where there is a direct route to China. Experts warn the Western trading sector that the Red Sea problem must be resolved, otherwise India and China, accustomed to cheap supplies, will be “given” by the actions of greedy carriers into the hands of Russian companies forever.

This approach to pricing cannot be tolerated, but it is not yet possible to influence carriers. Most likely, the regulator will be the market itself (again, as in the ill-fated 2021), when, against the backdrop of a lack of demand for transportation due to unjustified freight markups, transport companies suffered losses and reduced the cost of services.

Only this time it will be too late - Asia will completely open its market and from now on will buy raw materials only from Moscow, and most likely will not want to change anything, so as not to again encounter “surprises” in the form of the thirst for profit of carriers or traders.
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  1. strange guest Online strange guest
    strange guest (Strange Guest) 24 January 2024 09: 59
    The main thing is that you don’t twist your arms as the only consumer.
    1. k7k8 Offline k7k8
      k7k8 (vic) 24 January 2024 22: 17
      Actually, they're already unscrewing it
    2. Elena123 Offline Elena123
      Elena123 (elena) 25 January 2024 08: 26
      Oil is sold at $35 per barrel to India and China
      1. Glagol1 Offline Glagol1
        Glagol1 (Andrei) 25 January 2024 14: 54
        We made a mistake twice. Happens.
  2. Skipper Offline Skipper
    Skipper (Skipper) 24 January 2024 10: 17
    Western rotten capitalism in all its glory. This is, according to Americans, freedom and democracy. ...when, taking advantage of the plight, rotten capitalists, from the all-consuming thirst for profit and greed, bury themselves forever.
    1. Andrey Andreev_2 (Andrey Andreev) 24 January 2024 11: 20
      Quote: Skipper
      Western rotten capitalism in all its glory. This is, according to Americans, freedom and democracy. ...when, taking advantage of their plight, rotten capitalists, out of an all-consuming thirst for profit and greed, bury themselves forever.

      Yes, we are exactly the same capitalists (rotten). How can we supply energy resources to Europe if they then “go to war” against us in the Northern Military District? Only money rules the world(((
      1. In passing Offline In passing
        In passing (Galina Rožkova) 24 January 2024 14: 41
        You forget that the sale of resources to Europe is budget revenue. Army, doctors, teachers, officials, police, roads and schools.
        1. twice-born Offline twice-born
          twice-born (Unknown) 24 January 2024 19: 21
          And we sold oil, metal and gunpowder (now uranium) to Nazi Europe in 43, 2 years after the start of WWII?! Then we, too, and how, had to go to war, the army, doctors, teachers, workers and officials (by the way, they will get by!)!
          But this is something that is beyond the comprehension of the mind; one would not imagine such a thing in one’s delirium!
          But now it’s normal, and you justify it. They say this betrayal is only for our benefit!
          1. Sergei Fonov Offline Sergei Fonov
            Sergei Fonov (sergey fonov) 25 January 2024 18: 18
            The most unpleasant thing is, but it looks like Galina is right. If there are no sales of raw materials abroad, the budget will not be filled, this is a threat to stability in the country, and thus the threat is eliminated, unfortunately not forever.
          2. Nelton Offline Nelton
            Nelton (Oleg) 25 January 2024 19: 02
            Quote: Twice-born
            And we sold it in '43

            in the 195s, at the height of the Korean War, they supplied chromium and manganese ore to the USA.
        2. Techniksamoleta Offline Techniksamoleta
          Techniksamoleta (Vladimir Vanyan) 24 January 2024 20: 38
          How would you feel about the fact that these resources were used to produce a bullet that hit someone you know?
          Don't confuse citizens with politicians. And even more so with business sharks who have made a fortune in a couple of years.
          1. Nelton Offline Nelton
            Nelton (Oleg) 25 January 2024 19: 07
            Quote: Techniksamoleta
            using these resources the bullet was made

            the bullet will be manufactured without the help of Russian resources.
            A very small amount goes to the “war”, the main consumer is civilian industries, but replacements for ordinary resources can always be found, but in case of large volumes - maybe not immediately.

            But in general, it’s surprising that Western countries are introducing more and more sanctions against Russian resources - and our turbo-patriots fully support these Western decisions.
            The Ukrainian elite is categorically against a ceasefire - and again our turbo-patriots are surprisingly in solidarity with the leadership of the adversary...
      2. twice-born Offline twice-born
        twice-born (Unknown) 24 January 2024 19: 14
        It's more likely not money here, but one gang - a watering can. Whatever we have here and there, the Jewish clans distribute our wealth among themselves, driving the same money back and forth for the well-being of their world community and power.
    2. Alex Rosenberg Offline Alex Rosenberg
      Alex Rosenberg (Alex Rosenberg) 25 January 2024 19: 18
      Everything is on a blue screen and the smartest great strategist said that he was thrown out and was not accepted into the European Union and NATO. I thought that he would cry out of resentment. And now, since he was taken out by the nose, he starts yelling badly everywhere. We are the only Russians who are fattening. Everyone's teeth fell out like a comb from pickles.
  3. twice-born Offline twice-born
    twice-born (Unknown) 24 January 2024 19: 10
    Nobody knows what will happen in the future. If wishes were horses beggars might ride!
    The Chinese never relied on one supplier and always bought from several, so that there was competition among sellers. In addition, later they can easily begin to cooperate with others again when prices drop.
    And the Indians have become completely insolent and are demanding more discounts from us when we sell them oil for pennies. Why are they so smart! Let them buy now at our inflated price.
    1. Techniksamoleta Offline Techniksamoleta
      Techniksamoleta (Vladimir Vanyan) 24 January 2024 20: 34
      What does “oil for pennies” mean to you? How much is a kopeck and how much cheaper is it than world prices?
      1. twice-born Offline twice-born
        twice-born (Unknown) 25 January 2024 00: 36
        Cheaper by an average of 30% from world prices. Cheaper than even the enemy’s notorious ceiling! But we don’t seem to comply with it!
  4. Glagol1 Offline Glagol1
    Glagol1 (Andrei) 25 January 2024 14: 56
    Dreams, dreams... But what is certain is that all available Far Eastern oil from Russia will be contracted and without any special discounts. But in terms of volume it is not much.