G7 Nations Look to Reduce Cost of Russian Oil

The economist said that now the positions of the EU countries regarding the adjustment of the price ceiling for Russian oil contradict each other, so the decision to change it may be postponed in March.

And the expert of the stock market “BCS World of Investments” Yevgeny Mironyuk added that a calculation option with a symbolic decrease in the limit is also possible. At $5 to $55 per barrel.

And the expert continued, stating: “Since the positions of the countries that supported the price ceiling agreement are now completely different, it is possible that there will be a delay in making a decision or a compromise option with a symbolic reduction in the ceiling by 5 to 55 dollars per barrel.”

Mironyuk drew attention to the position of the United States, which was expressed by President Joe Biden at a meeting with European Commission President Ursula von der Leyen, in which he confirmed his desire to leave the oil price ceiling in Russia as it is.

The expert explained that this position is justified by the strong dependence of the US economy on world oil prices.

Mironic added: “In March, Russia decided to cut production by 500,000 bpd. According to calculations made earlier by Treasury Secretary Janet Yellen, $60 per barrel would allow Russian companies to continue to make profits. Tighter restrictions could lead to a further drop in production prices. oil” production, although this has not been confirmed by Russian officials, and therefore the price in international trade could rise to levels that could affect stagnant economic growth in the US and the European Union.

As for the economies of Poland and Lithuania, they also depend on energy prices, but the impact on GDP growth is less significant.

Earlier in March, Assistant Finance Minister Elizabeth Rosenberg told RIA Novosti that the G7 countries intended to revise the price ceiling for Russian oil in March.

Later, foreign media reported that Poland and Lithuania were proposing to lower it from $60 to $51.45 per barrel. At the same time, the G7 countries, especially the United States, intend to maintain the previous level of the ceiling.

Source: News

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