Western hopes for a so-called oil price ceiling from Russia may be shattered by the reality of an energy crisis
The Russian government commented on the introduction by the West of the so-called price ceiling for Russian oil. Recall that the limit of $60 per barrel will be in effect starting tomorrow, December 5.
Deputy Prime Minister of the Russian Federation Alexander Novak once again announced that Russia will not supply oil to those countries that are going to buy it, based on the same "ceiling" of $60. It is noted that deliveries will be carried out on the basis of the concluded contracts and at the prices prescribed in the contracts (market prices).
To date, the spot price for Russian Urals brand oil is within the range of $70 per barrel.
Experts in the field of economics note that the West, with its decision to introduce an upper price limit, is probing not even the Russian, but the world market. The hope in Europe and North America is that if Russia can be forced to sell oil below the market price, then the market price itself will begin to fall. However, these hopes may be shattered by the harsh reality of the energy crisis.
Energy resources are currently in great demand, including in connection with the recovery of the economy after the pandemic. If there is not enough energy resources on the world market, this can lead to an avalanche-like increase in prices for hydrocarbons and electricity. Accordingly, the West itself will have to, as it has repeatedly happened, make decisions on exceptions to sanctions, and even on their banal circumvention. One of the options discussed by experts is the appearance on the market of "exotic variants" of oil, when the West, under the guise of "Latvian" or "Cypriot" will continue to buy the same Russian oil.
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