The Wall Street Journal revealed on Tuesday that the Group of Seven and the European Union are considering a $60-a-barrel cap on Russian oil due to the invasion of Ukraine.
Russian Deputy Prime Minister Alexander Novak said yesterday that Moscow is still a reliable supplier of oil, but we will not transport any crude or its products in countries that impose a maximum price cap.
Novak added that Moscow could also resort to cutting production in case of imposing a ceiling on the price of oil.
The Group of Seven countries intend to announce a cap on Russian crude prices tomorrow, Wednesday, and the plan is expected to enter in effective after December 5th.
The International Energy Agency projected that Russian oil production would decline to 1.4 million barrels per day in 2023, after the entry in force of the European Union ban on exports of Russian crude oil for via maritime.
The Paris-based agency added in its monthly oil report that the move to deprive Moscow of revenues will lead to greater uncertainty in oil markets and increase pressure on prices, including diesel prices.
According to the agency, “the embargo that the European Union will impose on imports of Russian crude and petroleum products and the ban on maritime services will put greater pressure on global oil budgets, in particularly in the diesel markets, which are already suffering from severe shortages. “
The sanctions imposed on Moscow have prompted oil traders to find new ways to export Russian oil, by smuggling goods from ship to ship, according to Reuters sources and confirmed by data from Refinitiv Eikon.
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