Chevron announced difficulties due to the price ceiling for petroleum products from Russia
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The price ceiling imposed by the West on Russian oil products has created a lot of difficulties for the energy markets, said Mike Wirth, chairman of the board of directors of American Chevron. write “RIA News”.
“Under normal conditions, the system is optimized (when demand and production capacity change. – Ed.). But now there are many complexities,” Wirth said at the CERAWeek energy conference, commenting on the consequences of the West imposing a price ceiling on oil products from Russia and a ban on the purchase of oil and oil products in Europe.
Difficulties are connected, among other things, with restrictions on the ability to buy, sell and insure petroleum products, he added.
From December 5, 2022, the price ceiling for Russian oil introduced by the G7 countries (G7, includes the UK, Germany, Italy, Canada, USA, France, Japan) and the European Union (EU) is in effect. It is set at $60/bbl.
Later, they set a limit on export prices for expensive oil products from Russia (for example, diesel) at $100/bbl, and for cheaper ones (fuel oil) at $45/bbl, the restrictions came into force simultaneously with the ban on offshore deliveries of oil products from Russia in the EU on February 5th.
In response to these restrictions, President Vladimir Putin signed a retaliatory decree on December 27, 2022, according to which Russia will not supply oil if the contracts explicitly or implicitly provide for a cap price mechanism. It is emphasized that this measure is applied at all stages of deliveries to the final buyer. The document entered into force on February 1.
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