"Will have teeth": the effect of limiting prices for Russian oil depends on China - expert

The Russian Embassy in the United States is convinced that restriction will allegedly lead to a widespread increase in uncertainty and an increase in costs for consumers of raw materials. IHS Markit oil markets analyst Jim Burkhard said that a decrease in demand for Russian oil from China causes a decrease in prices for this product below $ 60 per barrel. About it writes the publication Associated Press.

"What is happening in China will help determine if the price ceiling will have some teeth," said Jim Burkhard. The publication writes that price limitation is aimed at putting economic pressure on Russia and further limiting its ability to finance war with Ukraine. Journalists recalled that Russian oil is already sold at a price of about 60 dollars per barrel, which is much lower than the price of the Brent International Reference Brent, which closed on Friday at $ 85. 42 per barrel.

This situation was relevant before the countries of Europe and the Great Seven decided to introduce a ceiling of oil prices from the Russian Federation. At the same time, as stated in the material, the Russian Embassy in the United States insists that Russian oil "will still be needed. " They are convinced that restrictions will allegedly lead to an increase in uncertainty and an increase in costs for consumers of raw materials.

Ukraine also responded to the introduction of restrictions on Russian oil. Yes, Presidential Office Andriy Yermak wrote on Telegram that it would be worth introducing a $ 30 pricing ceiling at a barrel. "We always reach our goal and Russia's economy will still be destroyed, and Russia itself will pay and be responsible for all crimes," the statement said. Earlier, Focus wrote that Post -RF was threatened that from this year Europe would live without Russian oil.