Oil flows

Interesting article on all the connected elements:

  • China and India open to taking in Urals oil
  • Urals similar to Middle East grades, but now selling at a discount.
  • But then, need to factor in transport (Urals twice as far as Middle East for both India and China)
  • Urals discount allows China to replenish strategic reserve
  • Other stuff, including the swap potential (Middle Eastern oil ends up going to Europe)



The rupee and rmb are less valuable than the USD and Eur. There is a transaction cost to trying to use the Eur for finished goods and parts to have some upkeep of the Russian economy.