$17 / barrel
That's what China is paying over the next five years for oil from Russia, says Bloomberg. The Chinese fronted $6B to Rosneft for the acquisition of Yugansk (formerly w/Yukos). Rosneft delivers the 48M+ tons of oil through 2010. Today, ural blend crude is trading at $40 and change (after the news). Quite a deal they struck. The race for oil is heating up and while this has obvious domestic impact, the real questions lurking are how is India going to get in on this and whats the impact on treasuries?