The effects of Geopolitical sanctions in the Oil market
LONDON, ENGLAND, May 09, 2024 /24-7PressRelease/ —
Q. Please briefly introduce yourself to the readers
A. I am a main board director of four companies in the oil and financial marketplace. between the 4 companies we hold 3 oil oil and gas licences. we work with 2 governments and various refineries. we are oil field owners, upstream and sellers of crude.
Q. Thank you for that introduction, first question, have the OFAC sanctions against Russia and Venezuela affected the Oil markets in a major way?
A. In my opinion, not especially, Russian output has remained the same with them selling to countries who in all honesty take no notice of the sanctions. these countries have merely refined the Russian oil and sold it into the European market as their own oil, which technically it is.
Venezuela was given a temporary sanction relief, the original sanctions were on humanitarian grounds, not oil specifically, OFAC last October eased the sanctions on Venezuela, but this was only for oil and secondary market bonds anyway. this easing was for a tial period of six months. at the end of January Mr Maduro broke the humanitarian aspect with his behaviour regarding the election, so it was no surprise to anyone that in April the original sanctions were reinstated with a 45 day grace period for anyone to complete contracts already signed.
During this six month period the USA bought the majority of oil until the US Government increased domestic output to the highest seen, to encourage us buyers to buy domestic product this then prompted Venezuela to cut any discounts to the USA. so its been a bit of cat and mouse.
Q. Do you think foreign currency sanctions and oil sanctions have been effective against Russia?
A. There’s no doubt that the foreign currency sanctions have had some effect, but i am sure there are many former eastern bloc countries that have been able to assist them and with regard to oil, it is perfectly possible to convert pricing from us dollars to euro in attempt to remove the usa from therefore being involved with transactions.
Q. Do you foresee any changes in the near future
A. i can’t see the USA helping anyone at the moment, they will carry on wielding the stars and stripes for their own financial benefit. the US deficit is now up to 34 trillion dollars under the current administration and every dollar they can earn increases when they take out the opposition. so no, i can see nothing changing. their current allegiances are certainly not just geopolitical but also financial.
Q. Thank you for your opinions and for the knowledge imparted, we wish you all the success in your future dealings
A. Thank you, it was a pleasure talking to you
RDHH Capital holds Oil and Gas licenses and has just issued a Financial Instrument to receive a major allocation from a sanction free government refinery.
Tenders for partners for upstream and downstream are open, details on request.
Contact [email protected]
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