Major oil producers worried about price cap

2022-12-12 03:40:13

(MENAFN) Major oil producers are worried regarding the price cap put by the Group of Seven countries on Russian crude exports, Oman’s energy minister, Salim Al-Aufi, announced in an interview with Bloomberg.

The cap on Russian seaborne oil, set at USD60 a barrel, was initiated by the EU, the G7 countries, and Australia on December 5. It bars Western firms from giving insurance and other services to boats holding Russian oil, if the cargo is not bought at or under the price specified.

“I don’t think anyone likes it,” Al-Aufi informed the agency earlier this week. “We don’t know how far it will go. Today, it’s Russia. But tomorrow that can change and it could be a global price cap. That would be extremely serious.”

The minister also cautioned that the measure might reduce investment in oil output internationally.

Talking days following the Organization of the Petroleum Exporting Countries and its allies (OPEC+) gathered to talk over policy, Al-Aufi declared the group agreed to hold production steady, underlining that the market is not “ready to receive additional volumes.”

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