Now it's oil: China, BRICS and OPEC+ build new trading system, locking out US suppliers and banks

China and Iran developed a comprehensive energy market, involving shadow fleets of tankers and a system of rebranding oil for domestic use, or for further export to other Asian countries. Russia has since joined, after sanctions were placed on oil producers and banks there.

The result is a parallel economy that now totals millions of barrels per day in shipments to China by OPEC+ countries, and a sharp decline in global demand from Western suppliers. The implications for US and European oil suppliers are very negative, as global crude prices are now far below profit breakeven levels. Already, US oil majors are shelving oilfield development projects, and reducing active rig count.

Resources and links:

Barrons, BP Says Oil Demand Is Falling, While OPEC Says It’s Rising. What Gives?

Rigzone, JP Morgan Talks Global Oil Demand

S&P, Barclays lowers 2024 Brent oil price forecast to $93/b on demand concerns

Oil Prices Poised To Climb in 2024 Amid Geopolitical Uncertainty

CNBC, OPEC is highly bullish on long-term oil demand growth. Not everyone agrees

NPR, Oil prices plunge as demand from China falls

Zerohedge, What Sanctions? China Imports Record Amount Of Iranian Oil

The axis of evasion: Behind China’s oil trade with Iran and Russia

US drillers cut oil and gas rigs for fifth week in six, Baker Hughes says

Average WTI price needed for U.S. oil and gas producers to stay profitable by well status in selected U.S. oilfields as of 2024

Capital Expenditure (CapEx) Definition, Formula, and Examples

Closing scene, Chengdu, Sichuan province

[rwksasc]

Love it! Decoupling is what the U.S. asked for, and it’s what it gets.

[deepone]

The US is doing an excellent job at sanctioning, at itself.

[onetwothreefour-sn]

Always straight to the point, with factual references and no fluff. We appreciate this style of videos. Good luck to you.

[kkhalifah]

Finally the world realizes that the universe does not revolve around the USA and the bullies are now being excluded.

[rogerstarkey]

We're entering the "No thank you" phase of BRICS as they trade everything between each other.

[CmeonDiz]

West bought this on themselves. Perhaps, the only good thing they did for the whole world. "Live long and prosper" for all humans who want a peaceful life.

[jakobbergen]

I love your clear explanations of complex matters. Go BRICs!

[gelinrefira]

The fundamental question should be if Russia, China and Iran were to trade with each other, why should that involve the west in the first place?

I want to add the actual premise here since this comment seem to have some traction through an edit.

The more core question is why should the west be allowed to control finance and trade to the extent that we are using, (or forced to use) their financial services when countries should be able to set up their own bilateral or trilateral or multilateral trading and financial systems.

Of course this is somewhat a rhetorical question since we all know about the history of Bretton Woods and later nixon "the crook" doing away the gold standard. But it really underscore the fundamental nature of today's economic and financial system is just another manifestation of old western colonial power. They put this system in place because they could, and the rest of the the global majority couldn't resist.

The post war de-colonization era is really just a switching of the guard, where the older form of direct colonialism by the European on the Global Majority switched to financial and economic colonization by the UAS empire on the rest of the world.

This isn't just about the SWIFT payment system. What we are witnessing today is the historical dismantling of this neocolonialism system that the UAS empire has enjoyed since the end of WWII, and they are panicking because they have no idea how to live in a post colonial era.

[zeecGRC]

This is the best way forward for us in the global south. I have been doing business with China for 15 years now and business with the Europe and the US.. China outperforms in every aspect. A system of trade away from the West is most welcomed by us in the South. It works and has respect for humans. Long live China.

[RandB_Aquatics]

Soon my country will be able to do business and actually progress in the face of american sanctions. Zimbabweeee

[john]

Great episode. Next month, the BRICS conference in Kazan will further begin to formalize and solidify the trading system which bypasses the west. 156 countries are interested in joining the new system.

[jimmylam]

Sanctions are like boomerangs. They would curl back and hit the thrower.

[yaoliang]

The US due to extreme greed n arrogance has over abused the exorbitant privilege placed upon them by the trust of others n has killed the goose that lay the golden eggs.

[glorianyambok]

I just LOOOVE this channel!!!. The content is so well presented in an easy to understand unbiased way. ❤

[SSL_SSL]

You are very on point on the oil prices decline. I've known for sometime that quite a few countries are trading oil and gas with China using the Chinese RMB rather than the US dollar, i.e. Russia, Saudi Arabia, Iran and others. That is something I don't see reported in my neck of the wood watching CNBC. The days of the petro dollar hegemony are numbered and coming to an end before our eyes !!!

[liamporter]

You're the only very few who understand, know and are willing to surface the truths. The world needs more of you.

[hadi]

Just another case of; "You Reap What You Sow".

[Aceks]

Looks like the SWIFT banking system is becoming redundant, and the USD is surviving on borrowed time.

[philipspencer]

Fabulous analysis. Straight to the point. Love the quiet reflections at the end of your videos. God bless Kevin. Stay safe

[amandagrant]

The United States is neither the largest oil exporter nor the largest oil importer.
Forcing the settlement in US dollars will only arouse the resentment of the countries concerned.