January 2, 2023, 08:36 – Public News Service – OSN

Promotion of the price ceiling for Russian oil, which was actively borrowed USA, is associated with the country’s attempt to regain its former influence on the market. Alexey Belogoriev, Deputy Chief Director for Energy at the Institute of Energy and Finance (IEF), shared the corresponding opinion in an interview with RIA Novosti.

He stressed that the mining potential oil The US, which is fixed at the moment, is at a level close to exhaustion. A similar situation was caused by problems in the shale industry. According to Belogoryev, even if the upward trend in the indicator can continue in 2023, it will reach a peak.

The expert also noted that back in 2014-2019, the rapid growth of oil production in the United States was recognized as the economic regulator of the market, which was in opposition to OPEC+.

“In this sense, shale oil production has definitely ceased to play its decisive role. Having lost this mechanism, the United States is now offering a new option in the form of such a cupping of Russian oil prices. Therefore, here, I think, there are, of course, far-reaching calculations,” Belogoryev emphasized.

He also noted that, in his opinion, the United States and other Western countries are striving to regain control over the oil market, which they lost back in the early 70s, when OPEC began its work in full. The expert is sure that the introduction of a price ceiling for Russian oil should become a mechanism “that works in the same plane.”

It is for this reason, Belogoryev noted, that OPEC+ came out in support of Russia on the oil deal. This is due to the fact that the restrictions imposed against Russia may become general instead of a private one.

Finally, the specialist said that the consumer dictates prices often in those conditions when supply exceeds demand. However, in the current situation, the problem is related to the “artificiality” of this mechanism.

Formerly Public News Service informedthat the US Department of the Treasury shared a preliminary instruction on the application of the price cap mechanism to petroleum products exported from the Russian Federation.