Bloomberg: Russia is considering introducing a “price floor” for oil

In response to the agreement by the EU countries, the G7 and Australia of a price ceiling for oil supplied from Russia, the Russian leadership is considering introducing a “price floor” for energy exports, reports Bloomberg with reference to sources. According to the publication, Moscow can implement the restriction either through the introduction of a fixed price for Russian oil, or through the establishment of maximum discounts on it relative to foreign reference grades.

“The Kremlin does not want to oppose neutral states that buy Russian oil, or put any pressure on them with non-market moves,” Bloomberg quoted one of the sources as saying. There is no data on the estimated level of “sex” yet.

The scenario with the establishment of maximum discounts on oil from Russia involves the introduction of an “artificial” discount on the Russian energy resource, the amount of which traders will not be able to exceed when exporting oil. It, according to Bloomberg, will be regularly reviewed depending on the situation on the market.

On December 2, the European Union agreed to limit the price of oil supplies from Russia at $60 per barrel, and the next day Australia and the G7 countries joined the sanction. The Kremlin refused to accept a price limit, and Russian Deputy Prime Minister Alexander Novak informedthat the government is developing a mechanism to ban the application of the new restriction.

About the price ceiling – in the material “Kommersant FM” “Oil is sold with a limit”.

Andrey Sapozhnikov