Russian sanctions

Russian sanctions

Postby mkarpoff » Sun Sep 18, 2022 12:55 pm

There were a couple of articles on energy in this week's Barrons. One of the points made was that in the next couple of months (I think Dec) both the UK and USA insurance companies (which control world shipping insurance) will cease insuring ships that load in Russia. That will effectively end tanker shipments from Russia as Chinese companies cannot pick up the policies.
I haven't seen much written about this issue, nor about how much oil/natgas this will remove from the market. I wonder if any EPG subscribers have any info on the subject.
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Re: Russian sanctions

Postby dan_s » Sun Sep 18, 2022 1:49 pm

MY TAKE: Several things point to higher oil prices by year-end.
> Yes, the sanctions against Russia should reduce global supply.
> OPEC is clearly out of spare capacity.
> OECD countries can't keep draining their SPRs
> Winter is coming and there is a heating oil shortage.
> Supply Chain problems will keep a lid on U.S. shale production.
Dan Steffens
Energy Prospectus Group
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Re: Russian sanctions

Postby Fraser921 » Mon Sep 19, 2022 12:20 pm

Its created a demand for cheap older tankers.

Also, the crude used to be shipped from Russia to the EU was a 3 day trip. Now it has to go half way around the world.

The EU now will have to source oil from the Middle east, Africa, Brazil and the US replacing a 3 day trip with a 30 day trip

That's why I said to buy tanker companies

Just Today at 1:18 est... 1/2 day change

NAT up 11.4 %
TNK up 10.3 %
OET up 7.2 %
INSW up 7.2 %
FRO 6.8 %
DHT up 5.17 %

BONIUS sleeper pick TK up only 3.9 % they own 10 m shares of TNK plus 250 m cash
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