Goldman Sachs says that Russian oil importers pay more to offset western sanctions
Date
2/21/2023 1:49:33 AM
(MENAFN) According to a recent note by Goldman Sachs, importers of Russian oil have been paying more than the quoted prices to mitigate the impact of Western sanctions. The gap between the average effective price paid and the quoted crude price has been widening since March last year, reaching around USD25 per barrel in December. Goldman Sachs suggested that the resilience of Russian oil production may be partly attributed to the higher effective prices paid for the commodity.
In response to the Western-imposed price ceiling, Russia recently announced that it would voluntarily reduce its oil production in March by 500,000 barrels per day, halting sales to buyers who comply with the limit. The European Union and the G7 have introduced price caps on Russian oil and petroleum products, setting a limit of USD100 per barrel for diesel, jet fuel, and gasoline, as well as a USD45-per-barrel ceiling for other oil products that trade below the market price. Western companies are barred from providing insurance and shipping services to fuel exports that are priced over these limits. These price limits follow a previously introduced USD60-per-barrel price ceiling on Russian crude oil.
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