EU’s Oil Price Cap Has Already Failed

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You would think that when our leaders saw the sanctions were hurting us and not Russia, they would walk them back. They’re not, and they’re starting to get dropouts who have had enough as the winter sets in.

Mamdouh Salameh, a prominent oil economist and World Bank energy consultant told the Oilprice news outlet this week.

“The Western price cap on Russian oil exports has already failed and soon will be consigned to a waste bin… Neither OPEC+ countries nor Russia will agree to sell their oil at the cap price of $60 a barrel when the price in the market is above $85… Sellers can easily find buyers for their oil, but Western countries can’t, and without oil, their economies will come to a standstill. They will be the ultimate losers,” he said.

“The proof is that when the cap was launched on 5 December, Brent crude was $73 a barrel, but since then, it has risen to $85.43 today, a 17% rise,” he said.

“Russia won’t lose. Its main buyers, like China, India, Asian countries… have already ignored the price cap and are continuing to buy Russian crude in increasing volumes… Even if Russia sells 6 million barrels a day of crude oil at today’s Brent price of $85.43, it gets more revenue than selling 7 million barrels a day at $73. Therefore, Russia’s budget won’t lose a single penny. On the contrary… the Russian budget’s surplus could only expand,” he said.


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