Russian oil price cap dangerous for the energy market
“Such actions run counter to the principles of trade relations and will most likely lead to serious consequences for the global energy market,” Vladimir Putin said. Which was speaking in a telephone interview with Iraqi Prime Minister Mohamed Shia al-Sudani, during which the two leaders discussed the willingness of Western countries to determine the price of Russian oil and set it a ceiling price.
Optimistic assessment of work within OPEC +
The statement released by the Kremlin said that Iraq and Russia presented an optimistic assessment of joint work within the framework of the OPEC+ alliance, which – according to them – helps to support the stability of the world oil market.
No decision on the fate of countries supporting the oil price cap
Earlier in the day, the Kremlin announced that Russia does not intend to supply oil and gas to countries that support the imposition of a cap on the price of Russian oil, but without any final decision in this regard is taken.
However, Moscow had already announced before that if this measure, approved within the framework of the G7, supported by the European Union and Australia, was adopted, it would suspend all oil sales to the signatory countries.
EU struggles to reach agreement on price cap level
G7 member countries are waiting to set a cap on the price of Russian oil transported by sea, which could be between $65 and $70 a barrel, but the governments of European Union (EU) countries have not yet agreed on the price. Negotiations must therefore continue.
Warning from Patrick Pouyanné (TotalEnergies)
Vladimir Putin is also not the only one to criticize the idea of setting up such a mechanism. Which is far from having the approval of the international oil sector. The latter believes that its application would be complex to say the least and could have negative consequences for the market.
The CEO of TotalEnergies Patrick Pouyanné has meanwhile warned against this measure considering that it is “a bad idea because it is a way to give back the advantage to (Russian President) Vladimir Putin”. .
“What I’m sure of is that if we do this, then Putin will say”we do not sell our oil” and the price will not be 95 dollars, it will be 150 dollars. It’s not something I would give to Vladimir Putin,” he added.
Our opinion, by leblogauto.com
Between the Westerners who are afraid of running out of oil and Russia who is afraid of seeing its oil windfall reduced, the two parties seem to be playing cat and mouse… without it being clear who is the cat or the mouse…
In the end, just to keep everyone happy…and not to play with fire…the cap on the price of Russian oil could only be a measure of reduced effectiveness…intended above all to save face for Westerners in the face of politically correct?
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