Oil under the cap: G7 and EU want to introduce two ceilings of oil prices from Russian Federation
It is noted that in December last year, the countries of the G-7, the European Union and Australia agreed to introduce the "ceiling of prices" for Russian oil exported by sea route, at the level of $ 60 per barrel. From February 5, 2023, the coalition plans to operate at once two "ceilings": one for products that are usually traded with raw oil, such as diesel fuel or gasoline, and the other - for products that are traded with a discount for raw oil , such as fuel oil.
"Representatives have agreed that this approach will allow the best to calibrate the policy of setting marginal prices for petroleum products, given the wide range of market prices, which are traded by these products," the statement said. At the same time, the US Ministry of Finance believes that the upper limit of oil prices has two goals: to reduce Russia's income by large discounts on its oil, which is purchased by large economies, such as China and India, and to provide world oil markets.
We will remind, on December 5, when the embargo on the import of oil from the Russian Federation to Europe, the country G7 and Australia signed an agreement on the marginal price of Russian oil at the level of 60 USD/barrel. As reported by AP News, the essence of restrictions that now insurance companies and other firms that need to be shipped will be able to deal with Russian oil only if the price of oil is at or below the specified ceiling.
However, the ceiling of $ 60 did not reflect the expectations of Ukraine and a number of its partners. Yes, President Volodymyr Zelenskyy in early December 2022 stated that he considers such a decision a non -serious and weak position. In his opinion, if the price limits of the Russian Federation will be $ 60 instead of thirty and thirty, which Poland and the Baltic countries spoke, then the Russian budget will receive about $ 100 billion in the year.
At the same time, according to economist Vitaliy Shapran Focus, the optimal price for Russian oil is not higher than $ 40 per barrel. "When the market is accustomed to a new price guidance and, if the Russians continue to threaten security in the region, I think our partners can move without hesitation to the $ 40 and then $ 30," the expert explained.