US oil price cap proposal appears inadequate – Moscow – RT Business News
Russian Deputy PM Says Global Crude Prices Depend On Balance Of Supply And Demand
Setting a price cap on crude oil from certain countries will not work because oil prices are pegged to the balance of supply and demand across the world, Russian Deputy Prime Minister Aleksandr Novak said on Thursday. .
“It is not known where this figure comes from, they can say what they want. The price must be formed by the method of the market based on the balance of supply and demand”, Novak said at Russian Energy Week, following the latest US proposal to set a $60-a-barrel price cap for Russian crude.
The senior official added that Moscow would not supply energy to countries that adopt trade policies that contradict the terms of existing oil and gas contracts.
“It has been made clear that we will not supply oil to countries that use the price cap. This is a bad precedent that could at any time spread to other suppliers, to all of world trade. says Novak.
He added that global crude prices are expected to reach around $100 a barrel in 2023.
US Treasury Secretary Reveals Russian Oil Price Cap Target
Earlier this week, US Treasury Secretary Janet Yellen said a likely cap in Russian oil export prices in the $60 a barrel range would reduce Moscow’s energy revenues while allowing profitable production, thus maintaining Russian crude on the world market. Yellen pointed out that the measure is still being discussed between the United States and its Western allies.
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