The US government will issue guidance on the Russian oil price ceiling on December 5 and be ready for some problems that arise in the process.
According to Reuters , Jim Mullinax, director of the Office of Sanctions Policy and Enforcement (US), told a conference that the government was in close contact with industry and international partners about the price ceiling oil and is approaching it with “spiritual flexibility”.
According to the plan, the US, the G7 group and Australia are expected to impose a ceiling on the price of oil shipments transported by sea from Russia from December 5; At the same time, a second price ceiling will be imposed on February 5 next year.
Oil tanker Vladimir Arsenyev at the Kozmino crude oil port on the shores of the Gulf of Nakhodka, near the port city of Nakhodka, Russia on August 12. Photo: Reuters
This unprecedented price ceiling is intended to prevent Russia from benefiting from the skyrocketing oil prices since the conflict with Ukraine, and to ensure that Russian oil continues to flow to the global market after the Union ban on Russian oil imports. European Union (EU) comes into force next month.
It is not clear at this time whether the new guidance will specify a cap price. This month, the alliance agreed to set a fixed price for Russian oil, rather than a floating rate.
The United States and its allies also called on insurance companies, finance, brokerage and navigation from other countries not to provide services to Russian crude oil tankers unless the oil is sold at or below the set price.
Mr. Mullinax said: “We have been relatively transparent on this matter and hope the countries have been informed. We have also received a lot of feedback from the parties. However, there may be some problems arising at the time of application”.
Elsewhere, Oil Price reports that short-term oil prices have been consistently rising this year, and most forecasters expect to reach as high as $100 next year. However, in the long run, things change.
Goldman Sachs predicts oil prices could rise to $125 per barrel if China lifts its COVID-19 lockdown measures. In 2023, the price of Brent oil is expected to be at $110/barrel and is likely to go higher.
Securities firm Morgan Stanley forecasts that emerging markets will recover next year. At that time, the demand for oil will increase because developing countries are the largest source of raw material consumption, including China and India.
However, Fitch Solutions predicts oil prices will fall from $102 this year to $95 in 2023 and to just $85 in 2026 as a result of a prolonged recession.