Russia is preparing its response to both the price cap and the embargo, a response that could cause the price spike that Western governments fear.
- Dec 08, 2022, 7:00 PM CST
The price cap on Russian oil at $60 per barrel does very little to immediately cut revenues for the Kremlin, as Western policymakers, especially those in the United States, focus more on keeping Russia’s crude flowing and preventing a plunge in global oil supply and another price spike, analysts say.
“They believed if there was an oil price spike, not only will it hurt us economically and politically, but it’ll damage Western support for Ukraine,” the source added. Policymakers were likely also careful not to set the cap too low, which would have created huge arbitrage opportunities and possibly tempt more actors in the physical oil market to engage in illicit outside-the-price-cap deals involving ‘dark fleets,’ he noted.
Hence, the price cap on Russian oil, which allows access to all those services provided by EU, UK, or G7 companies or persons if the crude is sold at or below a certain price. Set at $60 per barrel just days before the EU embargo took effect on Monday, the price cap is unlikely to immediately dent Russia’s revenues from oil—its crude is reportedly being sold at such discounts to Brent that it’s even lower than $60 per barrel, analysts say.
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Greek Shipowners Unfazed By The Oil Price Cap | OilPrice.comGreek shipowners do not appear to be worried about the oil price cap, with the largest shipowner claiming that they will become even richer
Lire la suite »
Russia’s Oil Exports Nosedive Following Price Cap | OilPrice.comRussian crude-oil exports have taken a serious hit since new sanctions and a price cap came into force earlier in the week, with the Wall Street Journal reporting that figures from two data providers on Russian crude both show a big fall
Lire la suite »
The Clock Is Ticking For The EU To Agree On A Gas Price Cap | OilPrice.comThe discussions about a gas price cap continue within the EU, and the earlier proposed level of the cap has been rejected by several parties
Lire la suite »
Hungary scraps fuel price cap after drop in imports curbs supply\n\t\t\tExpert insights, analysis and smart data help you cut through the noise to spot trends,\n\t\t\trisks and opportunities.\n\t\t\n\t\tJoin over 300,000 Finance professionals who already subscribe to the FT.
Lire la suite »
Hungary scraps fuel price cap after drop in imports curbs supply\n\t\t\tExpert insights, analysis and smart data help you cut through the noise to spot trends,\n\t\t\trisks and opportunities.\n\t\t\n\t\tJoin over 300,000 Finance professionals who already subscribe to the FT.
Lire la suite »
Russia Bets On Growing ‘Dark Fleet’ To Ship Its Oil | OilPrice.comAn unusually large number of tankers have changed ownership in recent months in what analysts and shipping industry officials believe is a push from Russia to continue shipping large volumes of its crude
Lire la suite »