Paris wants to set a maximum price for oil at the level of producing countries
Paris is not “opposed in principle” to the American price cap proposal but “what would be much more powerful for us is to put a maximum price on oil that comes from all producing countries”, has thus underlined the Elysée.
“This is what we need to re-engage in the discussion with OPEC +, and with all the oil producers in the world”, added the French presidency, without however specifying the terms of such a negotiation.
The United States in favor of a cap at the level of consumer countries
This proposal is distinct from that suggested by the United States, which pleads in favor of a cap on oil prices which would be decided in the consumer countries. They thus intend to impose a maximum selling price threshold to deal with thesoaring fuel prices which stands at historic levels.
It should be noted that, unlike France, the USA is one of the leading oil producing countries in the world.
This second scenario will be the subject of discussions between the leaders of the G7 meeting until Tuesday in Germany. Several capitals, including Berlin, have however already noted that this was a complex measure to implement.
“What we must do at the G7 is rather to try to have a + price cap + (ceiling) on oil, and in my eyes gas too, to avoid having too significant consequences of the sanctions and the global economic situation, said a source within the French presidency.
Our opinion, by leblogauto.com
Still, France’s proposal could be difficult to implement, the price is set according to global supply and demand on the oil market.
A ceiling price could however be set on Russian oil exports, if China and India are in favor of it.
to summarize
In the face of soaring oil prices… And that of the fuel, the governments are worried… in particular of the impact of the situation on the inflation and the purchasing power of their fellow citizens who more is voters. While Emmanuel Macron suffered a severe setback in the legislative elections last week, the French presidency declared on the sidelines of the G7 summit in Germany that France was in favor of setting a “maximum oil price” at the level producing countries.
Objective displayed in front of the other member countries: to counter the surge in prices caused by the war in Ukraine.
