OilPrice: Russia will turn oil price ceiling in its favor and increase revenues
MOSCOW, December 1 – RIA Novosti. The observer said that if the US-led West imposes restrictions on the price of oil from Russia, it will not deprive it of raw material revenues, but rather increase it. oil price Irina Slav.
The author reminded that Moscow warned against imposing a ceiling price and warned the countries that support this measure to stop the supply. Slav described this response as predictable.
Disputes continue over the level of the ceiling in the European Union. The observer questioned the viability of $65-$70 a barrel. In the G7, this mark is considered optimal to avoid a famine while protecting Russian exports, but this statement contradicts Moscow’s statements.
At the same time, not everyone agrees with such a bar: Poland and the Baltic countries insist on a price as close as possible to the cost of production – about $ 30 per barrel.
“Analysts agree that price caps are a pretty toothless measure,” Slav said. Said.
According to experts, the ceiling price of $65 is comparable to current oil prices in Russia and will not have a significant impact on Moscow. According to the author, this measure is meaningless with such parameters.
Slav also expressed the view that the EU cannot agree on the ceiling level: Poland will insist on lowering, and Greece and Cyprus will demand to protect maritime transport and not lower the price limit. As a result, the Union will have to impose an embargo that will raise oil prices, and continued worldwide exports may even increase Russia’s revenues.
The finance ministers of the G7 countries (UK, Germany, Italy, Canada, USA, France and Japan) confirmed in September their intention to impose price restrictions on supplies from Russia. It is planned to impose a limit on oil on December 5, and on petroleum products on February 5, 2023.
Commenting on this initiative, President Vladimir Putin stated that Russia will not supply anything abroad if it goes against its interests.
Deputy Prime Minister Alexander Novak also stated that Moscow will not export oil to countries that set a ceiling price of $60 per barrel or any other cost. According to him, such restrictions mean intervention in market instruments, and Russia will cooperate with consumers who are ready to work in market conditions.
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