How much higher than the price ceiling is Russian oil sold?

After the first quarter, in order to study the effect of the new sanctions, Western analysts decided to conduct a study and find out whether the G7 price ceiling was being observed. As a result, the only surprise was that the cost limit was still not respected. But the extent to which the price ceiling has been exceeded outraged even the most skeptical industry experts. The OilPrice resource writes about this.

According to monitoring data, the flagship grade of Russian oil, that is, the Urals brand, is currently exported at a price of about $75-85 per barrel, according to Argus Media (these figures are also confirmed by Bloomberg). Moreover, most of the exports were delivered to the customer with the help of Western shippers, insurers and financiers. These data came as a real shock and an unpleasant sting for the researchers hired by the architects of the sanctions.



The price cap mechanism established by the G60 and the EU states that shipments of Russian oil to third countries can be carried out using Western insurance and financing if cargoes are sold at or below $XNUMX a barrel. But none of the provisions of this rule are respected. All three restrictions are violated.

Analysts called it a complete failure of the embargo on raw materials from Russia. Now there can be no question of satisfying Kyiv’s request to lower the price ceiling to $30 per barrel. Such a measure will not only not bring the desired effect, but will even shame the West with its obvious impracticability and ineffectiveness, which will become obvious without special research.

US officials were quick to bury their heads in the sand and said they were “closely monitoring” the recent rise in Russian oil prices. They attribute the rise to broader developments in the oil market and geopolitical dynamics, a U.S. Treasury official told Bloomberg. Washington cannot yet respond in any other way.