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Post: Media writes that the US is against lowering the price ceiling for Russian oil

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An oil rocker in the Almetyevsk region of the Republic of Tatarstan. archive photo

Bloomberg: Biden administration opposes lowering oil price ceiling in Russia

MOSCOW, January 19 – RIA Novosti. The administration of US President Joe Biden opposes lowering the ceiling on oil prices from Russia, although some European countries are trying to further reduce Russia’s revenues, the agency reported. Bloomberg with reference to sources.

The Biden administration tends to oppose any move to lower the marginal price of Russia’s crude oil exports, even as some European countries seek to further cut Moscow’s revenues.

The agency explains that Russian Ural oil is trading below world prices and at a ceiling of $60 per barrel.

On December 5, Western oil sanctions came into effect: the European Union stopped accepting Russian oil transported by sea, and the G7 countries, Australia and the EU set a price cap for sea transport of $ 60 per barrel – oil is more expensive to transport and transport . insurance is prohibited. As of February 5, the maximum price for petroleum products is not yet known, but similar measures are expected to be taken. In response, Russia banned it from supplying oil to foreigners from 1 February if the contracts directly or indirectly provide for the use of the marginal price fixing mechanism.

In early December, a source in Brussels told reporters that the European Union plans to revise the Russian oil ceiling every two months, with the revision procedure going in parallel within the EU and as part of the negotiations with the G7 partners. It was noted that the first review is planned to be made in mid-January 2023.

At the same time, Bloomberg reports that the US wants to wait for additional G7 price restrictions on diesel fuel from the Russian Federation before revising the oil price, and notes that the restrictions will interact, according to Washington. Therefore, the US position increases the probability that the oil price will stay at $60 level, as the approval of all EU member states is required to change the ceiling.

Also, according to agency sources, a number of EU members, notably Poland and Estonia, insisted on a lower limit to reduce Moscow’s revenue, but other countries advocated a higher level, fearing the economic consequences. Germany has told other EU countries that any price revisions should be made within a time frame that does not run the risk of confusing the markets.

Source: Ria

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