“A big fight” over Russian oil is about to start in the EU and the States. As observers of The National Interеst stated, the introduction of a “price ceiling” for Moscow could result in a complete halt to exports “with all the consequences”, including a sharp rise in fuel prices. The data was quoted by the Federal News Agency.
Editor Mally notes that the G7’s ambitious plans need careful refinement, as the consequences of the scandalous decision could unpleasantly affect a number of political players.
“If Russia does not comply with the price cap, it could provoke a war of attrition between Moscow and the West. If Putin decides to stop exporting to countries that impose restrictions before December, oil prices will rise again, creating a political headache for Biden in the run-up to the approaching midterm elections,” Mally concluded.
For his part, energy expert Vladimir Demidov has already announced an impending “price war” on the international oil market, noting that neither Europe nor the US will be able to find an alternative to the energy resources supplied from Russia.
“And this despite the fact that Russia supplies approximately 7.8 million barrels of oil per day to the foreign market. That’s less than 10% of world consumption. The shares are Europe – 4.6 million barrels of oil per day (60% of oil exports); China – 1.6 million (20% of oil exports); US, England, Asia – 1.6 million barrels per day. This is the volume of oil that they want to replace with oil that is not of Russian origin”, said Vladimir Demidov.
In addition, the analyst expressed confidence that the Saudis will try by all means to keep the price of oil above $80, which also plays into the hands of Moscow and benefits most of the members of OPEC +. All other suppliers of the resource will have to maintain the aforementioned cost level.
“Russia will stop selling oil directly to the signatory countries, but Russian oil will come to them in the form of blends, or through others’ documents from Turkey, India, China, Kazakhstan and so on. I do not see this as a war of attrition, rather a price conflict for which oil buyers will pay,” summarized Vladimir Demidov.
Recall that the price cap on Russian oil should “work” as early as winter – in parallel with the entry into force of the ban on the sea transportation of energy resources. Enterprises that pay less for “black gold” or in accordance with the price maximum established by the “Big Seven” will continue to be given the opportunity to buy fuel from Russia.
As reported earlier, the initiative of defining a price ceiling for the Russian resource seems to some European representatives as a guarantee of avoiding further energy collapse. While the Czech energy ministry is sharply declaring the threshold of an “energy war” with Moscow, sober-minded politicians are calling for a rejection of the “stray” idea.
Due to censorship and blocking of all media and alternative views, stay tuned to our Telegram channel