IEA estimates Russia's loss from oil price ceiling in January at $8 billion
Fatih Birol, chief executive of the International Energy Agency, said that due to the price ceiling, Russia's oil and gas revenues fell by 30% or about $8 billion in January compared to the same period in 2022. Reuters.
According to him, this year the demand for oil in the world will grow at the expense of China, whose economy will recover, therefore, OPEC+ countries may have to reconsider their fuel production policy.
On October 5, the OPEC+ countries, which include, in particular, Russia and Saudi Arabia, agreed to reduce the target level of oil production by 2 million barrels per day from November 2022 to the end of 2023 as part of the Declaration of Cooperation. US President Joe Biden called the production cut short-sighted and in Russia's interests.
On December 5, an embargo on Russian oil came into force, and a price ceiling for oil from Russia was set at $60 per barrel. These restrictions were introduced, in particular, by the EU countries, the G7 and Australia. According to the Helsinki Center for Energy and Clean Air Research (CREA), the price ceiling manages Russia at €160 million ($172 million) daily. Formerly Bloomberg notedthat limiting the price of Russian oil has made Russia more dependent on its new main buyers, China and India.
Today, on February 5, restrictions from the European Union, G7 and Australia on oil products from Russia came into force. The Western coalition has set two price ceilings for them, depending on the type of product. The EU now bans the import of Russian oil products by sea.
According to CREA estimates, the daily losses of the Russian economy after February 5 will grow to $280 million a day. According to Kommersant, due to the fact that the budget revenues of the Russian Federation were under threat, the Russian government intends to tie the calculation of oil taxes to the price of Brent. This should encourage oil companies to either cut discounts or pay more taxes.
Read more about the revision of the tax system due to the fall in oil revenues - in the material "Produce, but verify".
