Gulf country: oil producers concerned about price ceiling

2022-12-12 04:35:45

(MENAFN) Salim Al-Aufi, Oman's energy minister, claimed in an interview with Bloomberg that major oil producers are concerned about the price ceiling placed by the Group of Seven nations on Russian crude shipments.

On December 5, the European Union, the G7 nations, and Australia imposed a USD60 per barrel cap on Russian seaborne oil. It prohibits Western corporations from offering insurance and other services to ships carrying Russian oil unless the oil was purchased at or below the stipulated price.

Al-Aufi informed the organization earlier this week, “I don’t think anyone likes it.” Noting that “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 issued a warning that the action may discourage foreign investment in oil output.

Al-Aufi claimed that the Organization of the Petroleum Exporting Countries and its Allies (OPEC+) decided to maintain output, highlighting the fact that the market isn't "ready to receive additional volumes."

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