🔴Ukraine may sink Russian oil tankers this time after attacks on oil refineries
🔴A combination of Russian, western and other tankers export almost $10 billion of Russian crude from the Black Sea every month. According to Kyiv Post media outlet, that equals the entirety of Russia's defense budget.
The publication notes that the oil continues to flow only because the US and western Europe so desire. In essence, the US is protecting Russian oil exports and allowing Russia to fund the war thereby.
“Ending this trade would materially degrade Russia's ability to conduct the war. It would also raise oil prices comfortably to $150, and perhaps as high as $200, per barrel. This would push Europe into a steep recession and would similarly punish US consumers.
A strike on a Russian tanker would also panic the White House, prompting a swift and desperately needed restructuring of the Price Cap. Ukraine will not win the war without it”, Kyiv Post said.
İt is noted that attacking Russian tankers is, of course, a politically risky option. A very risky option. On the other hand, certain defeat at the hands of the Russians is a much higher price to pay. If push comes to shove, the Ukrainians need to shove. Marjorie Taylor Greene and the MAGA Republicans need to decide if they want to own $6 unleaded as the Ukraine vote reaches the House floor.
Kyiv Post says that despite US fretting, European gasoline and diesel prices do not appear materially affected by Ukraine's attacks on Russian refineries.
Overall, oil prices are developing much as expected and against Ukraine's interest. The easiest, though high risk, way to motivate a desperately needed and vastly overdue restructuring of the Price Cap would be an attack on an oil tanker carrying Russian crude in the Black Sea. If the House fails to fund Ukraine and the White House declines to revisit the Price Cap, it might come down to that.
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