FT: US urges major traders to increase supplies of Russian oil

Representatives of the US Treasury met with the heads of the largest oil traders Trafigura and Gunvor and urged them to resume transportation of Russian oil, writes Financial Times (FT) citing sources. The publication notes that market representatives were “cautious” about oil supplies from Russia after the introduction of price restrictions on Russian energy resources.

“The Americans are actively urging us … to start transporting oil again,” one of the interlocutors of the publication said. According to another source, Washington “really wants oil to move.” The meetings between representatives of the Ministry of Finance and traders took place after Russia threatened to cut oil supplies, the FT notes.

US officials have assured traders that they can ship Russian oil as long as the price ceiling is set at $60 per barrel. At the same time, some traders and banks that provide loans for oil supplies are afraid of reputational risks associated with financing the “war machine”.

“Traders know that the rules allow them to trade Russian oil under the right circumstances, but is it really that attractive with all the potential risks?” – quotes the edition of the words of the adviser of one of the traders.

After the start of the Russian military operation in Ukraine, Trafigura announced the cessation of trading in Russian oil, and Gunvor reduced the supply of Russian fuel to a minimum. From December 5, the oil price ceiling at $60 per barrel came into force, from February 5 – for oil products from Russia at $100 and $45 per barrel (for products that are traded at a premium and a discount to oil, respectively).

February 10, Deputy Prime Minister Alexander Novak announcedthat Russia will voluntarily cut oil production by 500,000 barrels per day in March. March 8 Assistant Secretary of the Treasury for Combating Terrorist Financing and Financial Crime Elizabeth Rosenberg statedthat the G7 countries intend to revise the ceiling for oil prices from Russia in March.

More details – in the material “Kommersant FM” “Seven will look under the ceiling”.

Milena Kostereva