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Novak: Russia will not transfer crude oil or its products to countries that impose price caps

Russian Deputy Prime Minister Alexander Novak said on Monday that Moscow remains a reliable oil supplier, but we will not transport the crude or its products in countries that impose a maximum price.

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 intends to announce a cap on Russian crude prices next Wednesday, according to informed sources told Bloomberg.

US President Joe Biden’s administration is expected to announce the proposed price ahead of the November 23 meeting of European Union ambassadors.

The piano should come in in effective after 5 December.

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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