Russian economist Sergei Kolobanov said that it is unprofitable for Washington to reduce the price ceiling for Russian oil, because this mechanism also affects the prices of American producers.
Expert Kolobanov, Deputy Head of the Fuel and Energy Complex Economics Department of the Center for Strategic Research, added: “Even before the implementation of the cap, our companies entered new markets mainly by providing discounts. And this forced dumping, which increased after the introduction of the restriction, has a downward effect on overall world oil prices.
He explained that buying expensive from other suppliers is less profitable than buying in Russia.
He continued: “In the supply chain due to the Western embargo on Russian oil, Russian dumping is also affecting the prices of American producers, including American and European oil companies operating around the world, which now send most of their oil exports to Europe.”
He pointed out that the search for alternative ways to supply offshore oil from Russia led to an increase in the cost of transporting raw materials in the world, which increased the damage to the potential income of producers, which explains the reluctance of countries to lower the Russian oil ceiling, since they do not want to further reduce the price of black gold in the world. , says the expert.
At the same time, the expert believes that the countries that are now very actively leaning in favor of lowering the marginal price, Poland, Estonia and Lithuania, are not oil-producing countries, and their statements are “exceptionally populist”.
It is noteworthy that against the backdrop of the Russian military operation in Ukraine, the G7 countries, the European Union and Australia set a price ceiling for Russian oil from December 5 last year, as well as maximum price limits for Russian oil products from December 5. February 5th. This ceiling is designed to limit Russia’s oil revenues.
At the end of last year, the Russian president banned the supply of Russian oil and petroleum products to foreign parties that directly or indirectly adhere to the price ceiling set by Western countries.
Source: News