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Post: Chevron says it’s having difficulty with price ceilings for oil products from Russia


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

Chevron CEO Wirth: Ceiling price for oil products from Russia created many challenges

HOUSTON, 6 March – RIA Novosti. Mike Wirth, chairman of the board of directors of the American oil and gas company Chevron, said that the ceiling imposed by the West on the prices of oil products from Russia creates many difficulties for the functioning of energy markets.

“Under normal conditions, the system has been optimized (with changes in demand and production capacity – ed.). But now there are many challenges,” he said at the CERAWeek energy conference in Houston, Texas, and commented on the results. A ceiling on the prices of petroleum products from the Russian Federation and a ban on the purchase of petroleum and petroleum products in Europe by the West.

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According to Wirth, the difficulties are linked, among other things, to restrictions on the ability to buy, sell and insure petroleum products.

At the end of last year, Russian President Vladimir Putin banned the supply of Russian oil and petroleum products to foreigners if contracts directly or indirectly provide for the use of the price-fixing mechanism (the so-called ceiling) introduced by the United States. States and other hostile countries. Regarding oil, this response took effect on February 1. The government should set the date for petroleum products. until assigned.

Fuel sanctions of some countries for oil supply from Russia came into effect on February 5: The European Union banned the import of Russian petroleum products, while the EU and G7 countries set a ceiling price for petroleum products. The limit is set at US$100 per barrel for petroleum products originating in Russia, and US$45 per barrel for reference oil quality (diesel fuel) traded at a premium and traded at a discount (fuel oil). The oil sanctions went into effect on 5 December.

At the same time, the European Commission declared that petroleum products “mainly processed in a third country” do not fall below this ceiling, as if they were produced in a third country by mixing Russian and foreign oil. It was not specified how much they should be processed and in what proportion they could be mixed.

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Source: Ria

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