Japan buys Russian oil above $60-a-barrel cap, breaking with US allies

[Free Vulcan]

apan has begun purchasing Russian crude oil above the $60-a-barrel cap, breaking with Western allies thanks to an exception authorized by the United States.

As many European nations weaned themselves off Russian oil in response to the invasion of Ukraine, Japan stepped up its purchase of Russian natural gas.

https://www.foxbusiness.com/markets/japan-buys-russian-oil-above-60-barrel-cap-breaking-us-allies-report

[libertybele]

Other countries will follow as well as ditching our treasuries... say good-bye to the dollar and to the U.S.A.

[Kamaji]

Other countries will follow as well as ditching our treasuries... say good-bye to the dollar and to the U.S.A.

Why?  Japan is doing so pursuant to an agreement it worked out with the US on this matter, so Japan is not breaking with the U.S. or its allies since they've agreed ahead of time that Japan could do this.

[catfish1957]

Been warning everyone.

The dominos are starting to fall. 

[catfish1957]

Why?  Japan is doing so pursuant to an agreement it worked out with the US on this matter, so Japan is not breaking with the U.S. or its allies since they've agreed ahead of time that Japan could do this.

Japan fears that if their wagon is tied to snugly to a currency that might go into freefall as the world decouples from the $USD.

Maybe a tad of an exaggeration, but you can't buy much oil with play money

[Kamaji]

Japan fears that if their wagon is tied to snugly to a currency that might go into freefall as the world decouples from the $USD.

Maybe a tad of an exaggeration, but you can't buy much oil with play money

Why?  Did the agreement specify that Japan could clear the transactions in Roubles instead of USD?

[catfish1957]

Why?  Did the agreement specify that Japan could clear the transactions in Roubles instead of USD?

Of course I am not privy to the exact contractual wording Russia (ROSFNET)  has with Japan.  I do know that there is usually enough wiggle room to amend these contracts if there is enough of an incentive.  And right now in this economic climate, Japan is probably knee jerk responding to the OPEC cuts, realizing they better lock into something that won't throw them into a worse recession than they are already in.

In world economic chess as it applies to commodity markers , leverage is King.  And right now our chess piece is shrinking by the minute.

[Kamaji]

Of course I am not privy to the exact contractual wording Russia (ROSFNET)  has with Japan.  I do know that there is usually enough wiggle room to amend these contracts if there is enough of an incentive.  And right now in this economic climate, Japan is probably knee jerk responding to the OPEC cuts, realizing they better lock into something that won't throw them into a worse recession than they are already in.

In world economic chess as it applies to commodity markers , leverage is King.  And right now our chess piece is shrinking by the minute.

Maybe so, but Japan is doing nothing more startling than exercising rights it contractually agreed to with the U.S., so the title of the article is highly misleading, because Japan is not "breaking with US Allies".

[catfish1957]

Maybe so, but Japan is doing nothing more startling than exercising rights it contractually agreed to with the U.S., so the title of the article is highly misleading, because Japan is not "breaking with US Allies".

I feel sorry for Japan in that the fact they have to deal with 1000's of years of anomysity with a growing China, that threat, and have to juggle economic realities of being in the proverbial rock and hard place. 

Yes it is misleading, but OTOH, it does drive them closer to the BRIC bloc whether they like it or not.  They will be having to be making some hard choices in the near future.....  Like whether they need to yank their near $1T out our treasuries.   And whether they lose oil sources based on any Russian or Chinese military actions.  How do they respond. 

[Free Vulcan]

Maybe so, but Japan is doing nothing more startling than exercising rights it contractually agreed to with the U.S., so the title of the article is highly misleading, because Japan is not "breaking with US Allies".

I think it's more that if one goes, so goes the rest, and that will break the coalition against Russia, which will strengthen their financial position. Which in turn will strengthen BRICS.

[Fishrrman]

catfish predicts:
"Been warning everyone.
The dominos are starting to fall. "

Once The Party is in firm control here, they will do what the Bolsheviks did back around 1918:
Repudiate all foreign-held debt.
Perhaps some domestically-held, as well.

And then...
...go on from there.
They'll call it, "wiping clean the slate".

[Kamaji]

I feel sorry for Japan in that the fact they have to deal with 1000's of years of anomysity with a growing China, that threat, and have to juggle economic realities of being in the proverbial rock and hard place. 

Yes it is misleading, but OTOH, it does drive them closer to the BRIC bloc whether they like it or not.  They will be having to be making some hard choices in the near future.....  Like whether they need to yank their near $1T out our treasuries.   And whether they lose oil sources based on any Russian or Chinese military actions.  How do they respond. 

I don't think it goes anywheres near that far, and I am quite certain that Japan realizes that its survival is tied to its continued relationship with the U.S.

I do not think they are dumping the U.S., nor do I think they are going to develop a strong attachment to BRICs.  Their economic interests do not lie primarily in that direction.

[catfish1957]

I don't think it goes anywheres near that far, and I am quite certain that Japan realizes that its survival is tied to its continued relationship with the U.S.

I do not think they are dumping the U.S., nor do I think they are going to develop a strong attachment to BRICs.  Their economic interests do not lie primarily in that direction.

Collapse or expected collapse of $USD?  You might be surprised how quickly allegiances may change when it boils down to economic survival.  I certainly hope your assertion is correct, but desparation creates unlikely bed fellows.

At worst, I think Japan maintains a friendly relation with the U.S., but will (would) take a much more stronger nuetral stand in geopolitical matters.