PUTIN IS LAUGHING AT $60 PER BARREL

EU MAKES THEIR MOVE

E1vis.Eth

1/10/20231 min read

We will soon see if the G7 + Australia agreement to cap Russian seaborne crude oil to $60 per barrel as part of an international campaign to curb Russia’s ability to finance its war against Ukraine is going to work.

Personally, the most significant dependency is OPEC+. If they decide to reduce supply, we could see that $60 per barrel would be a short-lived deal. On a side observation, though, if you look at Australia Refined Petroleum Imports, it primarily comes from : Singapore ($2.82B), South Korea ($1.55B), China ($1.46B), Malaysia ($1.12B), and India ($913M).

While a noble act to stand by the EU, and knowing how much Russia is currently selling to China ($10b+ ), I’m not sure this support will last on $60 per barrel either. BUT Australia is the 2nd largest producer of URANIUM, which will come in handy in the Nuclear Power Race.

Nuclear power is not only carbon-free, it’s also one of the most reliable and safe energy sources. Countries around the world are beginning to recognize these advantages.100 reactors planned worldwide, the demand for uranium is set to grow. Unlocking new and existing supplies is critical to meeting this rising demand, and new uranium discoveries will be increasingly valuable in balancing the market.

So it’s important to note. WHO HAS THE WORLDS LARGEST SUPPLY OF URANIUM, and where do they sit within this geopolitical situation?

Kazakhstan, Canada, and Australia produce 70% of the world's uranium. The other 30% is made up of China ( 6.1% ), Ukraine (1.4% ), India ( 0.7% ), South Africa (0.6%), US ( 0.1% ), ROW ( 0.3% ).

Based on the above, I can spell out the recently formed BRICS nations that Russia and China are keen to develop. BRICS = Brazil, Russia, India, China, South Africa.