this European Union signed an agreement on Friday to set an upper limit on the price. Oil Russian it is transported by ship at $60 a barrel and has an adjustment mechanism to keep the figure constant. 5% below average The price of Russian oil in the international market. The upper limit, which came into effect on Monday, December 5, does not directly affect the community blockbecause from the same Monday a full embargo will be imposed on crude oil imported from Russia, instead wants to limit sudden price increases Caused by extraordinary market conditions and significantly reducing Russia’s oil revenue, Countries also estimate that this will “serve to stabilize world energy prices and at the same time mitigate negative consequences on third countries’ energy supply.”
Who was affected?
The limit to the maximum price at which Russia can sell its oil has been a measure imposed by the European Union countries. the remaining members G7 (Germany, Canada, United States, France, Japan, United Kingdom and Italy) and Australia. However, it is not a measure aimed at easing the prices paid by the Twenty-sevens for Moscow oil, as they agreed months ago not to buy any more Russian crude from this Monday; but above all the quests Reducing Moscow’s profit from sales to other countries. The measure prohibits European shipping companies from transporting Russian oil to third countries and related insurance services if it is sold for more than $60.
Ursula von der Leyen, President of the European Commission, underlined this issue after the announcement of the agreement and emphasized that: cap will “stabilize global energy markets” because it “will allow some Russian oil to be traded and transported by EU operators by sea, as long as it is sold below the limit.” “So this limit will directly benefit emerging and developing economies and it will be adjusted over time so we can react to market events,” he added.
Why did you put on the hat?
The purpose of the European Union is Limiting Moscow’s income and continuing to suffocate its economy Only in a balanced way to avoid a global lockdown due to the war in Ukraine, which could trigger the prices of this raw material, putting further pressure on consumers’ pockets and inflation on the continent. So Moscow continues to sell oil but limits its profits. Final deal found half way 65 euros agreed by the G7 from those who resist setting limits, such as Greece, Malta or Cyprus, fearing that the measure will adversely affect shipping sectors dedicated to the transport of crude oil, and Poland, which wants it to be well below the upper limit. But the price of a barrel of Ural oil, called the Russian blend, is currently around $65, just above the $60 limit imposed, suggesting limited impact in the short term.
When does it start to apply?
The $60-per-barrel limit will come into effect for crude oil on Monday, December 5, while the maximum price for petroleum products will apply on February 5, 2023. But there is one 45-day grace period For ships loading Russian oil at a price of more than 60 euros before this Monday, provided that they unload at the final port of destination before 19 January 2023. can be reviewed periodically to adapt to market situationTo ensure that the price cap is applied consistently by all operators, a 90-day transition period is set after each change in the price cap.
is it immovable
agreement between countries, “periodic review” of the upper limit every two months to respond to developments in the market. The goal is that the limit is always at least 5% lower than market price Russian oil and petroleum products calculated based on data provided by the International Energy Agency. The first assessment will take place “mid-January 2023” and, according to the text, should take into account “the expected results of the measure, its implementation, its effectiveness in terms of international harmonization and informal compliance with the maximum price”. mechanism and their potential impact on the Union and Member States, and to respond to market developments, including possible turbulences.” including the principle that it must be at least 5% lower than the market price.
How does it affect gasoline and diesel prices?
this The effect of this mechanism on prices fuels unpredictable. Following the deal, Brent’s price per barrel rose 2.56% since Friday to 57.76 euros per barrel; Gasoline and diesel prices in Spain continue to decline to 1,679 euros and 1,753 euros, respectively. Also, a new meeting was held this Sunday at which 13 members of the Organization of the Petroleum Exporting Countries (OPEC) and 10 allies, including Russia, agreed to maintain the two million barrels per day cut through the end of the year. 2023. The next meeting of the cartel is scheduled for June 4, 2023, but the group was eager to meet “any time” between now and then. “urgent new measures” if necessary.
Source: Informacion
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