🦧 $60 tops

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we’re all funding the war, kinda

democratic countries around the world have been thinking of a way to reduce russia's oil revenue

• russia makes up ~14% of the world's total supply of crude and condensate output

• oil and gas account for ~20% of russia's gdp (as of q2 '22)

simply banning russian oil may significantly reduce global energy supply while letting prices soar, which may cause unnecessary disruptions to energy markets in europe (and many other countries)

solution: price cap for some countries

on monday, australia and g7 countries implemented a price cap of $60 per barrel on russian oil

• india, china, turkey, and many others will still buy russian oil – this will allow the new policy to stabilize energy markets, without causing a drastic change

• this would force russia to sell its oil for cheaper than it wants to

  • the price cap is implemented indirectly by the g7 regulating corporations that they cannot insure, finance, or ship russian oil that's priced greater than $60 per barrel

what could go wrong?

• russia's working on its own fleet of 100+ ships so that it won't have to rely on western maritime companies for shipping

• $60 may turn out to be the "wrong sweet spot", virtually being ineffective in curbing russian revenue in funding the war

crude oil continuous contract currently sits a little above $70

💡 something im thinking about

password manager lastpass was breached for the second time this year (click image)

that's all, folks 🐒

as always, i’m no financial advisor! (i’m no substitute for professional financial services)