The price limit for Russian oil turned out to be impossible to establish in practice

Russian oil has many buyers around the world, and not all of them, with the introduction of an embargo and a price limit, are going to move into the shadows, to the black market, where it can be purchased outside the established rules. Most of the major customers of domestic raw materials still comply with international rules and regulations for the sale of black gold, conscientiously trying to abide by the law. But it is not so easy, often nothing succeeds, especially when it comes to calculating the price ceiling when making a deal.

On the one hand, limiting the price of oil to $60 a barrel may seem like a simple equation when written into a contract, but its implementation in a complex, multi-level market can be very confusing. The thing is that a particular batch of oil is almost never sold at fixed prices, but is contracted with a surcharge or discount to the forward prices of the main standards Brent or Dubai, as well as taking into account the cost of delivery and other indicators. The structure of the final price becomes more complicated.

As such, traders are now worried that they may inadvertently violate the restriction, while banks are increasingly worried about the high risk of compliance. As a result, the established limit on raw materials from the Russian Federation turned out to be simply impossible to calculate and translate into reality in order to finally comply with the restriction.

Real traders rarely trade at a fixed price

John Driscoll, chief strategist at JTD Energy Services Pte Ltd, told Bloomberg.

There are formula equations, market differentials and many other factors that will make the majority of traders violators of the sanctions regime, which will lead to unfounded accusations, Western experts believe.
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  1. Siberia55 Offline Siberia55
    Siberia55 (Yuri) 8 December 2022 09: 46
    There is no problem that we do not create for ourselves!

    - the motto of all this "civilized" riffraff
  2. Vladimir80 Offline Vladimir80
    Vladimir80 8 December 2022 10: 34
    a strange statement in the article against the background of the fact that oil prices went down to the promised 60 USD.
  3. trampoline instructor (Cotriarch Peril) 9 December 2022 16: 07
    The price of Urals, Russia's main grade, which accounts for 60% of oil exports, has fallen to $43,72 per barrel. So much, according to Argus, was the cost of the shipment from the port of Primorsk on Wednesday, December 7th.