Top Stories

The statement about Russia’s readiness to sell oil with the introduction of a price ceiling was explained: Markets: Economics:

FNEB analyst Yushkov: Anthony Blinken believes that oil exports from Russia will not decrease

The main thesis that the Secretary of State tried to promote USA Anthony Blinken during his speech, is that as a result of the introduction of a price ceiling on Russian oil, oil exports from Russia in any case will not decrease. This is how the expert explained Blinken’s words in an interview with Financial University under the Government of the Russian FederationLead Analyst National Energy Security Fund (FNEB) Igor Yushkov.

Price dependency

Earlier, US Secretary of State Anthony Blinken during his speech at a press conference in Germany declaredthat Russia is so interested in exporting its oil that it is ready to sell it even if Western countries impose a ceiling on energy prices.

Blinken said nothing new

Igor YushkovFNEB Lead Analyst

“He stated the fact that Russia is interested in the export of hydrocarbons to maintain a normal situation in the economy. Yes, we have either 40 or even more percent of our income coming from the oil and gas complex. There is nothing surprising in this – we export hydrocarbons and earn on it, ”Yushkov explained.

At the same time, the analyst noted that it is not clear what Blinken meant when he spoke about Russia’s readiness to supply oil to the world market under any conditions.

“That Russia will agree to a price ceiling? Or that Russia will find some workarounds or schemes? It’s not entirely clear here. I think he was just trying to calm the market down. First, the Americans themselves imposed an embargo on Russian oil from April 1. Then they quickly realized that this has a negative impact, because if Russia cannot quickly reorient itself to other markets with these volumes, then they have to reduce exports, which means exacerbating the shortage in the world market. Because of this, the price of oil from any producer is growing,” he said.

Therefore, now the Americans are trying to calm the oil-importing countries, Yushkov is convinced. “They separated the introduction of the European embargo and the introduction of a price ceiling. Previously, it was all scheduled for December 5 this year. Then the introduction of the price ceiling was postponed to January 19. Now the Americans have begun to say that the coalition is not forming, so those who do not want to may not support the introduction of a price ceiling, ”the analyst recalled.

The main thesis that Blinken tried to promote was that as a result of the introduction of a price ceiling, oil exports from Russia would not decrease in any case. This means that there will be no shortage and there will be no price increase.

Igor YushkovFNEB Lead Analyst

Is a compromise possible?

The analyst is also sure that a compromise on the issue of introducing a price ceiling with the Russian side cannot appear.

“We understand that if we now agree on at least some price, then there are no guarantees that this ceiling will not be lowered tomorrow. The second point is that if this practice in the form of introducing a ceiling on the price of Russian oil works, then it may spread to other producers. Plus, if we agree to a ceiling on the price of oil, then it can be introduced for food products, and for fertilizers, and so on,” he concluded.

Former Russian Ambassador to the United States Anatoly Antonov warned on the risks of extending the price ceiling for goods of interest to the West, including gas and metals. According to the diplomat, Moscow will stop deliveries to those states that decide to use a restrictive mechanism to artificially keep prices down.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button