After months of negotiations, Western nations and their allies have agreed to cap the price of seaborne Russian oil at $60 a barrel.
They hope it will reduce Moscow’s ability to fund its war in Ukraine.
A spokesman says Russia won’t accept the move, while Ukraine’s president wants the price to be lowered to $30 a barrel.
So what will the cap achieve?
Presenter: Dareen Abughaida
Guests:
Sergei Markov – Director, Institute of Political Studies
Ulrich Brueckner – Professor of Political Science, Stanford University in Berlin
Chris Weafer – CEO of Macro-Advisory, a consultancy focused on Russia and Eurasia
Subscribe to our channel: http://bit.ly/AJSubscribe
Follow us on Twitter https://twitter.com/AJEnglish
Find us on Facebook https://www.facebook.com/aljazeera
Check our website: http://www.aljazeera.com/
Check out our Instagram page: https://www.instagram.com/aljazeeraenglish/
#UkraineWar #RussianOil #ukrainerussiawar #RussiaSanctions #InsideStory
30 Comments
hahahahahaha
Looks like a production cut is on the way.
This is rubbish policy to destroy EU economy. EU political leader smoking anabas with Ukrainian president.
Russian energy is going to Asia now then in EU. If Russian energy stop going in EU country then price go sky rocket and political leader will get hit hard.
What a stupid question in the title.
The oil price cap is a diluted sanction, because the west has run out of things to sanction, and it cannot stop Russian oil.
How is the EU/UK doing with all the other sanctions? While they all blame Putin, their cost of living crisis was triggered by sanctions, this one will be no different.
With Russia refusing to supply any country that imposes price caps, at best supply will reduce, price increases and Russia makes similar profits.
Think OPEC will increase output, recent events would strongly suggest otherwise.
What will happen to oil in stock market, up or down?
If the west wants to continue dominating the world economy they have to work hard for that. Trying to undermine other countries or creating wars will get them nowhere.
This is good news for a lot of developing countries who honestly find it difficult to boot the high energy prizes. They can buy discounted oil from Russia
Opec is meeting tomorrow to discuss cutting production more over this price cap. The European Union leaders just keep digging a deeper hole for themselves.
The current price is $100 per barrel,china and India were buying at 35% discount which they were buying at $65. The difference of $5 from the cap.
This year the world changed forever.
Europe and the US will no longer tolerate the existence of Russia under the Kremlin or China under the CCP.
Russian leaders believed they could just invade any European country and NATO would back down.
Chinese leaders believed they could bully and threaten the rest of the world like they do their own population.
Every person in the populations of the free world countries has witnessed in real time the actions of these countries governments and military.
The whole world is Anti Russian and Anti Chinese now. They, and countries that continue to trade with them will be progressively isolated from trade with western markets.
Because every dollar of trade with these countries now will be paying for weapons that will be used against the free world in future.
That oil price cap has nothing to do with the war,so simple answer is no, it's not going to anyway change the War. Only security guarantees from USA is the answer. Ukraine is a vessel state that has no say in its affairs.
The weird part of this ' story ' is that the price cap is getting all the media attention, when the more impactful part is that on Dec 5th, the EU will stop buying Russian oil by sea. Well you say, Russia will just sell to India and China instead of Germany. And this is possible and probable. But The cost of shipping oil to China is $10/barrel more than it is to Germany. On top of that it requires about 80 more tankers in operation to be able to deliver 1 million barrels a day to China(86 days round trip) than to deliver 1 million barrels a day to Germany (7 days round trip). Basically for a SuezMax tanker, you need 7 of them to have a daily delivery to Germany, you need 86 of them to have a daily delivery to China every day. Now add to that the fact that the majority of oil shipping companies are western, and most of the ones that aren't are insured by western companies means that Russia is going to have a hard time finding 86 tankers that will run its' oil and that are able to be insured. I don't think any single one of these issues is crushing to Russia, but when added together you are taking away a huge part of the profits. Higher cost per barrel for shipping because of longer routes, higher prices per day for shipping because less availability of ships and then you have India and China who know they are in a strong position to demand lower prices as they are the only russian buyers. There is no way China is going to pay anywhere near market value. They know if they walk away, Russia can't sell to anyone else. They are going to demand deeper discounts, probably even blow the $60 cap.
If the world put a price cap on oil producers then everyone would win except the greedy oil producers and governments that rely on oil income. The real way to do this is to increase oil production at every level possible. I see this backfiring if the Eastern countries dont get on board. OPEC will simply cut production. To counter OPEC , the world needs a buyers cartel too.
This species never been smart enough if always depend on OIL.
41% of global population are the BRICS nation and expanding in Africa , South America M. East and South Asia , Why Russia should worry anyway ?
😎
I'm going to have to agree with Zelinsky. The price cap is too high. Even if India and China were still to receive that discount, which is most advantages to them. Putin will still have income from oil and gas sales. The other issue is insurance for transport. If the price were capped at $30, that would make the wells almost impossible to continue to produce as the expenses would exceed the income. As a result either shutting in the wells or absorbing the additional difference. Just my opinion, having worked in the oil & gas industry for over 35 years in the US.
No, it won't end the invasion of Ukraine – only a change in leadership in Russia can do that. What it WILL do is cost the russian government lots of money. Unless OPEC rushes to russia's defence and cuts production. OPEC has shown that it is anti-west for decades, even though the west rescued its main members from Saddam. It appears that gratitude isn't an Arab trait. Fool us once – shame on you…….
I can't help but wonder what thousands of German people who work in car production will think when the big companies move to the USA for cheap electricity and gas.
First, if russian sell oil below $60 barrel, countries will oil from russia instead of other opec countries. Also, it will push oil down. I am sure gulf countries are not HAPPY, AND ALSO Russian interests will be hurt.
Second, if russia not sell oil under $60, countries have to pay more to the higher price. Other oil production countries will push oil price higher because you could not buy cheaper russia oil. Higher oil price will russia more bargain power.
Third, china is relaxing covid zero policy, the demand will be up.
In conclusion, we could expect oil price will be pushed up. $60 is an absurd idea.
OPEC has already said it will not increase production, so this seems like a great plan to destroy the middle class of America and Europe.
Ukraine is in a conundrum, the west is lying to Zelensky and Russia won't give up. The truth can be ugly sometimes… We just have to swallow it
The price cap is no more than a ridiculous idea from ridiculous people
Talking about change working against Russia or Western Hegemony. We'll soon seen, won't we?
How will the Donbas ©®£ be affected buy the price caps`[{haccp}]humanitrian }OPEC™ 1758^°st.lucia
@Can zelensky even be accountable for the 30%©®caps`Guieness?(NGP}]holistic cannibis /Marijuna / industrial -aero space Vatt Annie Edson Tylor™1901©666¶∆tonnage™
High technology is diversed, not only provided from the G7and EU, You underestimate China, India and other parts of parts of the world, The west has only ppl but no materials!More importan, Russia is one of the best tech development in the world and they can produce themselves!
@Crypto -Currencies/ National Green Party [{Coated bills please}]™®acne[{01758^°st.lucia,/Eastern Carribbean Notations™®©%
Russia should keep the oil for themselves