Introduction of a price ceiling on Russian oil may lead to an increase in the cost of black gold in the market. This opinion was expressed on Friday at a briefing by Kazakh Energy Minister Bolat Akchulakov.
"If any volume of oil leaves the market, they try to replace it with other sources. We know that other countries are increasing production volumes. When there is a sharp reduction and withdrawal of a large volume of oil from the market, prices tend to rise," he said in response to a question about the consequences of the introduction of the price ceiling on Russian oil.
The head of the department also noted that Russia, along with Saudi Arabia, is the largest producer and supplier of oil to international markets.
On December 5, an embargo on deliveries of Russian oil by sea to the European Union came into effect. The EU countries also agreed on a regulated price ceiling of $60 a barrel for Russian oil delivered by sea. The G7 countries and Australia announced a similar decision. Western countries imposed a ban on their companies to provide transportation, financial and insurance services to tankers carrying oil from Russia at a price above the agreed level.
On December 27, Russian President Vladimir Putin signed a decree on counter-measures to the introduction of the West's price ceiling on Russian oil, prohibiting from February its supplies to buyers who adhered to this restriction. At the same time, the head of the state reserved the right to make special decisions on the supply of oil and oil products, the implementation of which is prohibited by this decree. The ministry of energy of the Russian Federation was instructed to monitor the implementation of the ban. The document will enter into force on February 1, 2023, and will be valid until July 1, 2023.
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Based on materials from TASS