If Russia buys oil from Venezuela, will gas prices in the U.S. go up?



  1. 0 Votes

    The more oil sites that are developed the greater the supply for the market, which will hopefully stabelize consumer prices.

  2. 0 Votes

    The oil in question would almost certainly not go to Russia anyway; Russia is a net exporter of oil (#2 most months). This deal is an investment by the Russian consortium to make money, which would not happen if the oil went back to Russia. The most likely destination for this oil will be the US – the world’s largest consumer, and not that far away.

    No matter the rhetoric from Caracas, it remains that nearly half of Venezuela’s oil export market is to the US. They may well wish to change that, and may try, but you can’t create new oil markets overnight. Venezuela depends on the US as a customer as much (or more) as the US does on Venezuela as a seller.

    In any case, oil is priced globally and such deals will not really affect the price significantly. If Venezuela ever does really change its oil export structure, so that, say, most of its exports go to China, then the US will have something to deal with — but the price will be the same to China, to the US, to whoever. There just might be less for the US to buy.

Please signup or login to answer this question.

Sorry,At this time user registration is disabled. We will open registration soon!