The USA and the G7 countries may soon experience a historic fiasco due to the ceiling set by Russia on oil prices. About this issue of The Hill declaration analyst Peter Doran.
“The ceiling price of Russian oil bears all the signs of an impending historic fiasco. Currently, there is almost no free oil left on the world energy market. For this reason, Doran said that the risk of oil prices skyrocketing after the restrictions were introduced is high.
According to him, the fact that the restriction on the purchase of oil by sea from Russia, introduced by the European Union (EU), will enter into force on the same day, complicates the situation. At the same time, in the summer, the United States and its allies saw the oil price ceiling as an elegant solution to the problem of reducing Russia’s income. But now the situation has changed in a different direction.
He added that even if the containment plan works, Russia will still make huge profits from oil sales due to lower production costs. It is now estimated that the production of a barrel is 20-40 dollars, which is well below the ceiling price.
3 December European Commission publication reportedThe ceiling price for oil from Russia, adopted by EU countries, assumes a soft transition period.