The expert called the price ceiling for Russian oil a “mortal blow” to the West
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How informs Forbes, CEO of the oilfield service company Canary Dan Eberhart spoke about the consequences of the introduction by the G7 countries of the price ceiling on the purchase of oil in Russia.
According to the expert, such a policy could be a “final death blow” for the Western countries, since there are only two possible outcomes of limiting the price of Russian oil exports, but none of them is good for the architects of this policy.
First, says Eberhart, such large buyers of Russian oil as China and India, with a high degree of probability, will simply ignore the imposition of a price cap or bypass it. And secondly, such restrictions will create significant disruptions in the supply of Russian oil, which will lead to a rapid increase in world prices, and consequently, an increase in oil revenues in Russia.
“The plan sounds good in theory, but in practice it is fraught with risk…because politicians do not understand the workings and economics of energy markets. The reality is that the price ceiling can be easily circumvented…The worst consequences are full-scale retaliation from Russia and using oil exports as a weapon,” the expert notes.
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