{"id":3845,"date":"2023-02-10T13:11:41","date_gmt":"2023-02-10T13:11:41","guid":{"rendered":"https:\/\/londonpost.news\/?p=3845"},"modified":"2023-03-23T18:51:19","modified_gmt":"2023-03-23T18:51:19","slug":"russia-says-it-will-cut-oil-production-via-western-caps","status":"publish","type":"post","link":"https:\/\/brusselsindependent.com\/fr\/politics\/russia-says-it-will-cut-oil-production-via-western-caps\/2023\/02\/10\/admin1\/","title":{"rendered":"Russia says it will cut oil production via Western caps"},"content":{"rendered":"

MOSCOW<\/span> (Reuters)<\/span> \u2014<\/span> Russia<\/span> announced<\/span> Friday<\/span> that<\/span> will<\/span> cut<\/span> oil<\/span> production<\/span> by<\/span> 500,000<\/span> barrels<\/span> per<\/span> day<\/span> next<\/span> month<\/span> after<\/span> Western<\/span> countries<\/span> capped<\/span> the<\/span> price<\/span> of<\/span> its<\/span> crude<\/span> over<\/span> its<\/span> action<\/span> in<\/span> Ukraine.<\/span>
\n<\/span>
\n<\/span>\u201cAs<\/span> of<\/span> today,<\/span> we<\/span> fully<\/span> sell<\/span> all<\/span> our<\/span> crude<\/span> output,<\/span> but<\/span> as<\/span> we<\/span> stated<\/span> before,<\/span> we<\/span> will<\/span> not<\/span> sell<\/span> oil<\/span> to<\/span> those<\/span> who<\/span> directly<\/span> or<\/span> indirectly<\/span> adhere<\/span> to<\/span> the<\/span> ‘price<\/span> ceiling,’\u201d<\/span> Deputy<\/span> Prime<\/span> Minister<\/span> Alexander<\/span> Novak<\/span> said<\/span> in<\/span> remarks<\/span> carried<\/span> by<\/span> Russian<\/span> news<\/span> agencies.<\/span>
\n<\/span>
\n<\/span>Analysts<\/span> have<\/span> said<\/span> one<\/span> possible<\/span> Russian<\/span> response<\/span> to<\/span> the<\/span> cap<\/span> would<\/span> be<\/span> to<\/span> slash<\/span> production<\/span> to<\/span> try<\/span> to<\/span> raise<\/span> oil<\/span> prices,<\/span> which<\/span> could<\/span> eventually<\/span> flow<\/span> through<\/span> to<\/span> higher<\/span> gasoline<\/span> prices<\/span> at<\/span> the<\/span> pump<\/span> as<\/span> less<\/span> oil<\/span> makes<\/span> it<\/span> to<\/span> the<\/span> global<\/span> market.<\/span> International<\/span> benchmark<\/span> Brent<\/span> rose<\/span> 2.2%<\/span> to<\/span> $86.42<\/span> a<\/span> barrel<\/span> on<\/span> Friday.<\/span>
\n<\/span>
\n<\/span>A<\/span> group<\/span> of<\/span> big<\/span> seven<\/span> democracies<\/span> has<\/span> imposed<\/span> a<\/span> price<\/span> cap<\/span> of<\/span> $60<\/span> a<\/span> barrel<\/span> on<\/span> Russian<\/span> oil<\/span> shipped<\/span> to<\/span> non-Western<\/span> countries.<\/span> Keeping<\/span> the<\/span> flow<\/span> flowing,<\/span> but<\/span> limiting<\/span> the<\/span> financial<\/span> interests<\/span> of<\/span> Russia<\/span> that<\/span> can<\/span> be<\/span> used<\/span> to<\/span> pay<\/span> for<\/span> campaigns<\/span> against<\/span> Ukraine.<\/span>
\n<\/span>
\n<\/span>The<\/span> cap<\/span> will<\/span> be<\/span> enforced<\/span> by<\/span> preventing<\/span> Western<\/span> companies,<\/span> which<\/span> primarily<\/span> control<\/span> shipping<\/span> and<\/span> insurance<\/span> services,<\/span> from<\/span> moving<\/span> oil<\/span> prices<\/span> above<\/span> the<\/span> cap.<\/span>
\n<\/span>
\n<\/span>Russia<\/span> has<\/span> said<\/span> it<\/span> will<\/span> not<\/span> sell<\/span> oil<\/span> to<\/span> countries<\/span> that<\/span> adhere<\/span> to<\/span> the<\/span> cap,<\/span> but<\/span> this<\/span> is<\/span> debatable<\/span> as<\/span> Russian<\/span> oil<\/span> has<\/span> recently<\/span> traded<\/span> below<\/span> the<\/span> cap<\/span> price.<\/span> But<\/span> the<\/span> cap,<\/span> the<\/span> concomitant<\/span> European<\/span> Union<\/span> embargo<\/span> on<\/span> most<\/span> Russian<\/span> oil,<\/span> and<\/span> the<\/span> drop<\/span> in<\/span> demand<\/span> for<\/span> crude<\/span> oil<\/span> have<\/span> allowed<\/span> customers<\/span> in<\/span> India,<\/span> Turkey<\/span> and<\/span> China<\/span> to<\/span> rush<\/span> for<\/span> deep<\/span> discounts<\/span> on<\/span> Russian<\/span> oil.<\/span>
\n<\/span>
\n<\/span>The<\/span> impact<\/span> of<\/span> the<\/span> 500,000<\/span> bbl\/d<\/span> cut<\/span> remains<\/span> an<\/span> open<\/span> question<\/span> as<\/span> the<\/span> slowing<\/span> global<\/span> economy<\/span> reduces<\/span> demand<\/span> for<\/span> oil.<\/span>
\n<\/span>
\n<\/span>His<\/span> OPEC+<\/span> alliance<\/span> of<\/span> oil<\/span> producers,<\/span> including<\/span> Russia,<\/span> said<\/span> in<\/span> October<\/span> that<\/span> he<\/span> had<\/span> announced<\/span> a<\/span> production<\/span> cut<\/span> of<\/span> 2<\/span> million<\/span> barrels<\/span> a<\/span> day<\/span> to<\/span> try<\/span> to<\/span> boost<\/span> oil<\/span> prices,<\/span> but<\/span> by<\/span> December<\/span> it<\/span> was<\/span> below<\/span> $80<\/span> a<\/span> barrel.<\/span>
\n<\/span>
\n<\/span>When<\/span> asked<\/span> if<\/span> Russia<\/span> had<\/span> consulted<\/span> with<\/span> OPEC+<\/span> members<\/span> about<\/span> the<\/span> new<\/span> Russian<\/span> output<\/span> cuts,<\/span> Russian<\/span> government<\/span> spokesman<\/span> Dmitry<\/span> Peskov<\/span> said<\/span> he<\/span> was<\/span> “with<\/span> some<\/span> OPEC+<\/span> members”<\/span> before<\/span> the<\/span> move<\/span> was<\/span> announced.<\/span> We<\/span> talked,”<\/span> he<\/span> said.<\/span> He<\/span> declined<\/span> to<\/span> provide<\/span> details.<\/span> However,<\/span> Novak<\/span> later<\/span> claimed<\/span> in<\/span> a<\/span> statement<\/span> that<\/span> Moscow<\/span> acted<\/span> without<\/span> consulting<\/span> anyone.<\/span>
\n<\/span>
\n<\/span>“This<\/span> is<\/span> a<\/span> voluntary<\/span> cut.<\/span> According<\/span> to<\/span> Russian<\/span> media,<\/span> the<\/span> deputy<\/span> prime<\/span> minister<\/span> had<\/span> not<\/span> discussed<\/span> it<\/span> with<\/span> anyone.<\/span>
\n<\/span>
\n<\/span>Simone<\/span> Tagliapietra,<\/span> an<\/span> energy<\/span> policy<\/span> expert<\/span> at<\/span> Brussels<\/span> think<\/span> tank<\/span> Bruegel,<\/span> said<\/span> the<\/span> new<\/span> cuts<\/span> “demonstrate<\/span> Russia’s<\/span> potential<\/span> move<\/span> to<\/span> weaponize<\/span> its<\/span> oil<\/span> supply<\/span> after<\/span> last<\/span> year’s<\/span> failed<\/span> attempt<\/span> to<\/span> weaponize<\/span> natural<\/span> gas.<\/span> It<\/span> could<\/span> be<\/span> an<\/span> early<\/span> sign,”<\/span> he<\/span> said.<\/span>
\n<\/span>
\n<\/span>However,<\/span> achieving<\/span> that<\/span> is<\/span> because<\/span> it<\/span> is<\/span> easier<\/span> to<\/span> find<\/span> alternative<\/span> oil<\/span> supplies<\/span> traded<\/span> via<\/span> tankers<\/span> that<\/span> traverse<\/span> the<\/span> globe<\/span> than<\/span> to<\/span> replace<\/span> the<\/span> natural<\/span> gas<\/span> that<\/span> was<\/span> mainly<\/span> transported<\/span> by<\/span> pipeline<\/span> before<\/span> the<\/span> war.<\/span> It<\/span> may<\/span> be<\/span> difficult.<\/span>
\n<\/span><\/p>","protected":false},"excerpt":{"rendered":"

MOSCOW (Reuters) \u2014 Russia announced Friday that will cut oil production by 500,000 barrels per day next month after Western countries capped the price of its crude over its action in Ukraine. \u201cAs of today, we fully sell all our crude output, but as we stated before, we will not sell oil to those who […]<\/p>","protected":false},"author":2,"featured_media":3736,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":""},"categories":[280,23,24,26,276,2407,2425,2480,2482],"tags":[1060,154,463,1055,1056,1057,1058,1059],"jetpack_featured_media_url":"https:\/\/brusselsindependent.com\/wp-content\/uploads\/2023\/02\/OIL.webp","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/posts\/3845"}],"collection":[{"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/comments?post=3845"}],"version-history":[{"count":2,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/posts\/3845\/revisions"}],"predecessor-version":[{"id":3848,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/posts\/3845\/revisions\/3848"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/media\/3736"}],"wp:attachment":[{"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/media?parent=3845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/categories?post=3845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/tags?post=3845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}