Despite geopolitical tensions in the Middle East, Brent crude still hovers below $75 a barrel and fell below $70 in September, down a quarter since the price cap was set.
Falling oil prices and the coming period of oversupply could create an ideal opportunity to tighten sanctions on Russian supplies to the point where they actually start hitting the Kremlin. Bloomberg strategist Julian Lee wrote this on Thursday, November 21.
The existing price cap mechanism, which did not hit Moscow’s oil revenues, was introduced at the request of the US administration, which is concerned that a virtual reduction in Russian exports will lead to a sharp increase in prices. However, today it no longer causes the same concerns it did two years ago.
Despite geopolitical tensions in the Middle East, Brent crude still hovers below $75 a barrel and dipped below $70 in September, a quarter lower than when the price cap was drafted.
There are currently 90 oil tankers under Western sanctions, sanctioned by one or more of the three administrations.
If Indian, Chinese and Turkish processors can be persuaded to stop or reduce the import of Russian raw materials from the shadow fleet, then Moscow’s exports will inevitably fall.
It has been noted that the penalties imposed on individual tankers for violating the price cap have been moderately successful. The vessels initially sat idle for several months after they were included on the US, UK or EU lists.
Recently, Moscow began to return them to service. Their return was of no consequence to those who received the ships in their ports.
“Maybe it’s time to do it,” the oil strategist said.
We remind you that the export of Russian petroleum products reached a nine-month high in the first half of November, which is associated with an increase in oil refining after the end of seasonal maintenance.
Let’s add that in March, against the backdrop of attacks on refineries, as well as an increase in demand, Russia introduced a ban on the export of fuel for six months. The ban was later lifted, allowing fuel to be exported from the country from May 20 to June 30.
Volume increases: Russia resumes fuel exports
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.