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Panic Sweep Across Energy Supply Chains As China Aggressively Reselling Russian Gas

The world is going through the most severe shortage of energy supplies that we have ever seen in modern times. The imbalance between supply and demand is pushing prices to absolutely astonishing levels, and sending many major economies to the edge of a disaster. Natural gas supplies, in particular, are shrinking all across the U.S. and Europe after Russia’s aggression on Ukraine resulted in a series of western sanctions on Russian exports. But while western nations suffer from energy scarcity, and populations face energy poverty, the Kremlin and Beijing continue to profit with record-high prices. In fact, a new report reveals that China is now aggressively reselling Russian liquified natural gas to energy-strapped countries in Europe and all over the world, effectively circumventing sanctions and helping to boost costs up 700% in some places. A rush for energy is now here, and the supply shock is likely to only get worse from this point on.
Over the past three months alone, China spent $18.9 billion on Russian oil, gas, and coal, almost double the amount a year earlier, the latest customs data show. Meanwhile, India spent $5.1 billion in the same period, more than five times the value of a year ago. That’s an additional $13 billion in revenue from both countries compared to the same months in 2021.
Although Europe continues to reject Russian energy exports, Sinopec data shows that China has been reselling Russian liquefied natural gas shipments to European countries. ZeroHedge experts noted yesterday that “China has been quietly reselling Russian LNG to the one place that desperately needs it more than anything: Europe – and of course, it is charging a kidney’s worth of markups in the process.”
Make no mistake: all of these “excess” energy supplies were soured in part or in whole in Russia, but since it has been “tolled” in China, it is no longer Russian. It is instead being branded as Chinese LNG, they exposed. The main problem is that as soon as economic activity bounces back in China, the situation will quickly reverse, and Beijing will no longer resell Russian gas to keep Europe warm during the coming winter.
At the end of the day, what the West has done was to make energy more expensive and scarce to itself while remaining primarily reliant on the exports of the country it now wants to ban. Worse even, is the fact that Europe could buy these supplies for less than half the price that it is paying right now. Instead, it has to pay 6 to 7 times more just to virtue signal to the world that it won’t fund Putin’s regime when in reality it is paying extra to both Xi and to Putin, who are both collecting a premium price thanks to the overall market scarcity.
It’s no wonder why European authorities are rushing to fill storage reserves so there’s enough gas to meet household heating and industrial needs over the northern winter. With European wholesale natural gas, coal, and CO2 prices near all-time highs, Europeans are facing a real threat of energy poverty, one which may in fact last for many years. In Germany, electricity prices have risen by a staggering 720% from the beginning of the year. This is a seismic energy supply shock that is destabilizing the entire West. The social, economic, and political fabric of the U.S. and Europe has never been so vulnerable to external disruptions. And once again, we, the consumers, are the ones who were left to deal with a myriad of terrible repercussions. 

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Written by Epic Economist

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  1. An individual is identified as an Idiot, when his / her actions, words & deeds tantamount to be detrimental for their own self This sort of self destructive behavior when turns into Norm, then the individual is identified as a Lunatic
    However, when instead of an individual a country repeate such self destructive behavior then what can that country be identified as – no pun intended – it is called Lunatic Asylum or Jail
    Vietnam war failed to teach, the shame of Iraq & Afghanistan war is fresh, yet they want to engage both China and Russia that, too in violation of their own strategy of engaging in war with countries way weaker than themselves
    Indeed it is a Luntic Asylum at best or a Jail by definition because it just doesn't entertain the needs, requirement or sentiment of its own citizens only due to greed

  2. hope the Ukraine was worth destroying global civilization and probably starting world war 3, Oh well once the bombs fall it will all be over one way or another

  3. China is not even in the top 10 energy provider to Europe. The capacity in LNG plants/gas pipes is already maxed out in Russia/China. Russia has only capacity to export 10% of its gas production to China. The economic downturn in Chinese production sector (new figures this morning) may provide some slack but will probably be sent to the Asian Market which has been abandoned by US.

  4. Can you make a video explaining how beginners can make huge profit within a short period of time? I mean i was at a seminar and the host spoke about making well over $880,000 within 4months of investing $150,000 i just need to know how.

  5. High fuel prices began when the Dems began their war on gasoline after the 2020 presidential 'selection'. We had the same problem when Obama was running things, and had his war against gasoline. It's no coincidence, that we're experiencing the same thing right now.

  6. I realized that the secret to making a million is making better investment. I always tell myself you don't need that new Car or that vacation just yet and that mindset helps me make more money investing. For example last year I invested 70k in blue chip stocks and crypto, with the help of my advisor ‘TERESA JENSEN WHITE’ and made about 380k, but guess what? I put it back and traded with her again and now I'm rounding up close to a million. Delayed gratification always pays off

  7. Greed is a very large part of what is pushing prices higher. Be sure to focus a lot on that. it Is exacerbated by tax cuts for the wealthy, no to horrible and expensive healthcare for most and an unfair wage too low to live on so that the wealthy can increase their obscenely large financial resources. We can legislate against greed and prosecute it vigorously.

  8. US policy applying sanctions on Russia has been a huge mistake, plunging Europe into energy starvation and economic collapse. The USA should have pursued detente with Russia and tried to solve the problems of Ukraine by negotiation.

  9. Russia sold their gas and oil in the straight line before. For cheep. Now, USA got their hands on, Russia selling it to USA, and USA selling it for European union with ski rocketing price. Money goes to USA rich "ass" pockets. That's all to this story,

  10. Looks like Russia was playing a couple moves ahead of the west. They knew sanctions were coming when they invaded and they were prepared for it. I think Russia is also draining west in their currency and military support for Ukraine. That’s why Russia wants conflict to drag in near standstill for long time.

  11. Stupid American politicians and MSM telling American citizens they're doing good work putting sanctions on Russia. Americans don't look for other sources of news so they think everything the politicians lie to them about constantly is correct. Sad state of affairs in US currently. When will MSM start doing journalism again??

  12. China is slowing down deliberately. When China slows down, the rest of the world will sink as happened at the beginning of the pandemic. So watch out for the domino effect that will happen in the West.

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