The cap on oil prices from Russia imposed by the G7 and allies is “working well,” US Energy Representative Amos Hochstein said at the CERAWeek energy conference in Houston.
According to Reuters, Hochstein noted that Russian products are being sold “below marginal prices.” At the same time, he recalled that Moscow in February announced a reduction in production by 500 thousand barrels. per day, or about 5% of the total production in Russia. However, he said the cut had a “minor impact” on prices. “I don’t know why Russia is reducing production. I don’t think the price has gone up that much. We want to make sure that Russian barrels are on the market and are traded at a discount,” Hochstein said.
Recall that the “price ceiling” or the regime of limiting the price limit for oil supplies from Russia has been in effect since December 5, 2022. It was set at $60 per barrel. Restrictive measures were approved by the G7 countries (USA, UK, Germany, France, Canada, Italy and Japan), as well as the European Union and Australia. In addition, from December 5, the European embargo on the supply of Russian crude oil by sea came into force, and from February 5, on Russian oil products.
Russia, in response to the introduced price ceiling, banned the supply of its oil and oil products, if the contracts “directly or indirectly provide for the use of the mechanism for fixing the marginal price.”
Source: Rosbalt
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