Russians lost the cold war but they, and China are winning the bankrupt America war. lol. Beat us at our own game.
Don’t forget that they have to sell the futures for more than what their face value was to make a profit.
With futures, they either have to sell the future before the exercise date or be ready to buy the oil at the indicated future strike price. If they can’t do the latter, they owe the difference between the spot market price and the future’s exercise price.
With futures, you are playing with a massive amount of leverage. It can slap you silly if you are not paying attention. The downward motion can bankrupt people quickly.
Wiki
Note the second paragraph: Both parties must fulfill the contract.
I think some politicians are looking for an easy target to skewer, to avoid answering some awkward questions about lack of in-country oil production and refinement.
