Igor Yushkov, a leading analyst at the National Energy Security Fund and an expert at the Financial University, spoke to RT about how the situation with the introduction of two price ceilings on oil products from Russia might develop.
The specialist noted that fuel markets are very diverse.
“And even the introduction of two price ceilings is also a very average story… It turns out that even if you put a single ceiling for light oil products which are traded more expensive than oil, the ‘equalisation’ there is also kind of strange. Diesel is a motor fuel market, gasoil is more of a feedstock for refining and chemicals, a completely different market in essence. So even here there can be complications as to which specific ceiling you take on completely different markets. There could be arguments… If you try to set a price ceiling for diesel the same as for fuel oil, then you will hit the market for petroleum products. If Russia cuts exports, there will be a deficit and higher prices around the world,” Yushkov said.
He also added that Russia has a consistent position on this.
“And all this talk about the effect of the oil price ceiling is very strange. Many people say that Russia respects the price ceiling, pointing out that URALS is now cheaper than $60 a barrel. But the fact that our oil from Sakhalin or the Far East costs more than $70 somehow nobody notices. How is it that we have a ceiling if all the oil from the Far East is above $70? The issue here is not that someone observes something, but that these are the realities of the market… I think it will be the same with oil products. Maybe we will maneuver towards exporting crude oil, reducing refining. We will look for tankers and ships that are loyal to ourselves, so that eventually we will import oil products, regardless of the price ceiling,” the interlocutor concluded to RT.
Earlier, US Deputy Treasury Secretary Wally Adeyomo said that the United States along with its allies had agreed to introduce two price ceilings on Russian oil products.
The first price ceiling will be introduced for products that are traded at a premium to crude oil, and the second one for products that are traded at a discount.
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