About oil ceilings

Sergey Kondratiev, Deputy Head of the Economic Department of the Institute for Energy and Finance, commented to the Kommersant newspaper on the US introduction of a cap on oil exported from Russia.

There will be many schemes for reloading oil at sea, with re-export to nearby countries, such as Turkey, and other ways of avoiding restrictions, Sergey Kondratiev suggests.

In the short term, within one to three months after the introduction of the price ceiling, exports may decrease by 0.3-0.5 million b/d, but in a few months Russia will be able to return to current production levels, he said. The IEA expects a reduction in supplies from Russia in the winter by 2 million b/d, Platts - by 1.5 million b/d.