Lower the ceiling on Russian oil prices “unprofitable” for the United States
https://sputniknews.com/20230319/lowering-russian-oil-price-cap-unprofitable-for-us-as-crude-costs-dip-would-hit-its-producers-1108571170.html
Lower Russian oil price cap ‘unprofitable’ for US as falling crude costs ‘would hit its producers’
Lower Russian oil price cap ‘unprofitable’ for US as falling crude costs ‘would hit its producers’
The United States is reluctant to lower the Russian oil price cap because lower crude costs would hit its own producers, a Russian expert has said.
2023-03-19T13:50+0000
2023-03-19T13:50+0000
2023-03-19T13:50+0000
Russia
Russian oil price cap in 2022
Oil prices
g7
world
european union (eu)
punishments
/html/head/meta[@name=”og:title”]/@content
/html/head/meta[@name=”og:description”]/@content
https://cdnn1.img.sputniknews.com/img/07e7/02/17/1107745190_0:181:2997:1867_1920x0_80_0_0_c1c3e574b66b6288e1a966f0210f097e.jpg
It would not be profitable for the United States if the Russian oil price cap were lowered, because this mechanism also affects prices for American producers, said Sergei Kolobanov, deputy head of the Department of Fuels and Fuels Sectors. energy at the Central Center for Strategic Research. Sputnik.Kolobanov this month weighed in on plans by the Group of Seven (G7) countries to reassess the $60 a barrel price cap on Russian oil that went into effect on December 5, 2002, to determine whether recalibration is required. Buying from Russia was more profitable than dealing with higher costs from other suppliers, Kolobanov explained. He added that the search for ways to transport Russia’s oil other than by sea – after the European Union banned exports by sea – has driven up the cost of transporting raw materials around the world, affecting increase the potential income of producers. Earlier in March, US Treasury Undersecretary Elizabeth Rosenberg said the G7 countries intended to revise the Russian oil price cap later in the month. The media reported that some countries, such as Poland, Lithuania and Estonia, are proposing to lower it from $60 to $51.45 a barrel. However, reports suggest that the G7 countries, particularly the United States, did not support a change in the Russian oil price cap. At the same time, according to Kolobanov, the countries which are now most actively in favor of lowering the price of oil after Russia launched its special military operation in Ukraine, the so-called collective West has launched a vast campaign of sanctions. against Moscow. Actively seeking ways to limit Russia’s energy revenues, including oil and gas, the European Union imposed an embargo in December 2022 on Russian crude oil. Then, with the G7 countries and Australia, the EU bloc agreed on a price cap of $60 a barrel for Russian oil, to be reviewed every two months so that it could stay at $5 % below International Energy Agency benchmark. After that, Brussels accepted the European Commission’s proposal for a cap of $100 a barrel for Russian diesel fuel and $45 a barrel for discounted products such as heating oil, the measure taking effect on February 5. 2023. The self-harm sanctions came at a time of rising diesel prices as Europe struggles to secure imports from alternative sources. In response to the restrictions, Moscow banned the supply of Russian oil and petroleum products if the contract directly or indirectly provides for a price cap, according to a decree signed by President Vladimir Putin. At the same time, the presidential decree provides for the possibility of issuing special permits. In late December, Kremlin spokesman Dmitry Peskov warned that oil and gas price caps are unacceptable to Russia and that the country will never accept the destruction of market prices. .
https://sputniknews.com/20230314/russia-building-up-shipping-fleet-to-transport-oil-amid-price-cap-coalition-1108390656.html
https://sputniknews.com/20230208/price-cap-on-russian-diesel-to-raise-costs-for-europe-disrupt-logistics-energy-expert-1107077628.html
Russia
2023
News
en_GB
sell price c, russian oil price cap, g7 review, eu price cap. unprofitable for us, the fall in crude prices would affect producers,
sell price c, russian oil price cap, g7 review, eu price cap. unprofitable for us, the fall in crude prices would affect producers,
As part of the sanctions against Russia, the cap of $60 a barrel on Russian oil came into effect last December, along with a ban on maritime exports. The G7 nations and Australia have also capped Russian crude exports, with a review every two months to keep them 5% below the International Energy Agency’s benchmark.
Kolobanov weighed in on the plans of the Group of Seven (G7) countries this month to reassess the $60-a-barrel Russian oil price cap that went into effect on December 5, 2002, to determine whether a recalibration is necessary.
“Even before the cap was imposed, [Russian] companies were able to access new markets mainly through rebates, and this forced dumping, which intensified after the introduction of the cap and is having a downward effect on world oil prices,” he said. he declares.
Buying from Russia was more profitable than dealing with higher costs from other suppliers, Kolobanov explained.
“Due to the Western embargo on Russian oil, the forced dumping affects the prices of American producers, including American and European oil companies, operating around the world, who currently send a significant part of their oil exports to Europe,” said the deputy head of the Department of Complex Fuel and Energy Economics at the Central Center for Strategic Research.
Earlier in March, US Treasury Undersecretary Elizabeth Rosenberg said the G7 countries intended to revise the Russian oil price cap later in the month. The media reported that some countries, such as Poland, Lithuania and Estonia, are proposing to lower it from $60 to $51.45 a barrel. However, reports suggest that the G7 countries, especially the United States, did not support a change in the Russian oil price cap.
At the same time, according to Kolobanov, the countries that today are most actively in favor of lowering the oil price ceiling are not oil-producing states, and their statements are “to a large extent populist in nature “.
sputniknews Gt
