Russian Oil Price Cap: There is a discussion about imposing a price cap on the prices of crude oil produced in Russia. According to reports, the European Union may set a price limit of $65 to $70 per barrel on Russian crude oil prices. This price is more than the cost of production of Russia as well as more than the demand of those countries who are demanding to impose a price cap.
It is believed that the group of 7 countries may agree to fix the price of crude oil produced in Russia at 65 to 70 dollars per barrel. The meeting of the ambassadors of the European Union is going to be held on Wednesday, in which the mechanism of the price cap and the proposed price limit will be discussed. Whatever price cap will be fixed, approval will have to be taken from the member countries.
It is believed that Russian crude oil is trading at $65 per barrel while Brent crude oil is trading at $88 per barrel. America wants to maintain the supply of crude coming from Russia while limiting Russia’s earnings, while the European Union is also in favor of hurting Russia’s revenue.
After imposing a price cap on Russian crude oil, if the oil is not sold at a lower price than the fixed price, then the Russian oil transport company, which is providing shipping and other services such as insurance, brokerage and financial assistance, will be banned. .
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India is importing crude oil from Russia at cheap prices. America (United States), European Union (European Union) are also pressurizing India to impose a price cap on Russian oil. It is believed that if a price cap is imposed on Russian crude oil, then the profit earned on selling crude oil to Russia will decrease. India and China are continuously importing oil from Russia despite the ban of America and European countries. Due to which the ban has no effect. Oil from Russia which used to go to European countries earlier, countries like India and China are importing it at a lower price.
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