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The price limit for Russian oil comes into force/ Zelensky unhappy, what is expected to happen

The price limit for Russian oil comes into force/ Zelensky unhappy, what is

Oil prices have risen after major producers agreed to continue cutting production and the G7 and its allies agreed to cap the price of Russian oil.

Brent crude rose about 0.6% to above $86 a barrel on Monday morning. On Friday, the G7 agreed to cap the price of Russian oil at $60 a barrel to increase pressure on Russia to invade Ukraine.

Meanwhile, the Opec+ group of oil producers said at the weekend it would stick to its policy of cutting output.

Ukraine's Zelensky considered the decision "weak" and not too punitive for Russia. 

Analysts said oil prices were also boosted by the easing of Covid restrictions in some Chinese cities, which could lead to an increase in oil demand.

More cities in China, including Urumqi in the northwest, have said they will loosen curbs after mass protests against the country's zero-covid policy.

The price cap means that only Russian oil bought for less than $60 a barrel will be allowed to be transported using G7 and EU tankers, insurance companies and credit institutions.

This could make it difficult for Moscow to sell its oil at a higher price because many major shipping and insurance companies are based within the G7.

Russia has said it will not accept the price cap and has threatened to stop exporting oil to countries that approve the measures.

Source: BBC

 

 

 

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