As of this Monday, the European Union stops accepting Russian oil and, together with the G7 and Australia, imposes a price limit of US$ 60 per barrel.
Sputnik – The Organization of Petroleum Exporting Countries OPEC+ may reach a consensus on a moderate reduction in production to maintain stability in the world oil market, and then the price cap for Russian oil will not have the desired effect, points out the Chinese newspaper Global Times.
As of today (5), Western sanctions on energy come into force: the European Union (EU) stops accepting Russian oil and together with the G7 group and Australia imposes a price cap of US$ 60 per barrel. In both cases it is a question of delivery by sea.
According to Zhang Hong, a research associate at the Institute of Russia, Eastern Europe and Central Asia Studies of the Chinese Academy of Social Sciences (CASS), Russia will certainly take decisive countermeasures at the diplomatic level, because it does not want to lose the opportunity to determine energy prices – price controls are a fundamental component of economic sovereignty.
“The impact of price restrictions on direct oil trade between Russia and the EU is practically nil. This is due to the fact that direct trade between the two sides is almost suspended, and the West is mainly aiming to influence Russian oil exports and price negotiations with third countries,” said Zhang.
In his opinion, if Russian oil prices fall to the $30 level demanded by some European countries, Moscow could cut production, which would instead increase world prices.
At the same time, experts interviewed by the newspaper predict another possibility: the OPEC+ alliance, led by Saudi Arabia and Russia, could reach a consensus on a moderate reduction in production to maintain stability in the oil market.
Zhang Hong notes that this will make Western countries’ agreement on price caps not have the desired effect and will merely be diplomatic propaganda.
Earlier, Russian Deputy Prime Minister Aleksandr Novak said that Moscow will not accept an oil price cap and will only work with those consumers who are willing to cooperate on market conditions.
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