HomeMediaLatest NewsWhat does the US want to achieve by capping oil prices?

What does the US want to achieve by capping oil prices?

29 June 2022

Belogoryev Alexey M. Research and Development Director, Director of the Center for Energy strategic analysis and forecasting

Alexey Belogoryev, Deputy Principal Director on Energy Studies of the Institute for Energy and Finance, commented to RIA Novosti on the reasons, opportunities and prospects for introducing marginal prices for Russian oil by Western countries.

The United States, promoting among the G7 countries the idea of ​​limiting oil prices from Russia, probably wants to achieve a general decline in world quotes before the elections, but such a market reaction is not entirely obvious and undermines its reliability, Alexey Belogoriev commented to RIA Novosti.

The expert emphasizes that the reaction of the market may be exactly the opposite, as it was in recent months. Despite the unprecedented ($30-35) discounts on Russian oil grades, world quotations rose, covering the discount, and do not yet show clear downward trends.

"However, in the long term, such political innovations create dangerous precedents, undermining the confidence of all oil importers in the reliability of international trade and its market nature," he adds.

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