Economy

Russian crude is at $52, nicely beneath the proposed worth cap

  • Russia’s flagship crude, Ural, is presently hovering round $52 per barrel.
  • Russian crude oil is already buying and selling beneath the proposed G7-EU-UK worth ceiling.
  • EU leaders failed to succeed in a choice on the higher restrict of the oil worth on Thursday.


Russia’s flagship Urals crude presently hovers round $52 per barrel, greater than $10 beneath the proposed G7-EU-UK worth ceiling of $65-$70/Russian barrel. Bloomberg.

The G7 and the EU haven’t but made a ultimate choice, however in lower than two weeks, on December 5, the worth cap mechanism and the EU embargo on the import of Russian marine crude oil will come into impact.

On Wednesday, it was reported that the EU is negotiating to restrict the worth of Russian oil someplace Between $65 and $70 per barrel. If such a cap is adopted, it will not truly cut back the worth of the flagship Russian crude presently in the marketplace.

The EU ambassadors of the 27-member bloc mentioned the G7 proposal on the higher restrict this week, however a choice couldn’t be made on Thursday, when EU nations have been divided on whether or not the $65-70 worth ceiling was too excessive or too low.

$65-70 per barrel worth ceiling for Russian oil not anticipated to instantly cut back Putin’s oil revenues, provided that this is kind of the worth patrons are presently paying for Russian crude, a number of trade sources with information of transaction costs advised Reuters on Thursday.

Wooden Mackenzie’s vice chairman of gasoline and LNG exploration Massimo Di Odoardo stated CNBC on Friday: “The low cost ranges are definitely according to the reductions already available in the market.”

“It is one thing that, when positioned, does not appear to be it has any impression [on Moscow] something if the worth is so excessive,” Di Odoardo added.

Charles Kennedy for Oilprice.com

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