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Date: Sat, 23 Jul 2022 10:51:35 -0700 (PDT)
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Subject: =?UTF-8?Q?Re=3A_Russia_won=E2=80=99t_supply_oil_to_=E2=80=98price_cap=E2=80=99_par?=
=?UTF-8?Q?ticipants_=E2=80=94_head_of_Central_Bank_Moscow_will_redirect_deli?=
=?UTF-8?Q?veries_to_other_countries_instead=2C_Elvira_Nabiullina_said?=
From: ltlee1
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On Friday, July 22, 2022 at 2:28:53 PM UTC-4, stoney wrote:
> Russia won=E2=80=99t supply oil to =E2=80=98price cap=E2=80=99 participan=
ts =E2=80=94 head of Central Bank=20
> Moscow will redirect deliveries to other countries instead, Elvira Nabiul=
lina said=20
>=20
> Russia won=E2=80=99t supply oil to =E2=80=98price cap=E2=80=99 participan=
ts =E2=80=94 head of Central Bank=20
> FILE PHOTO: The Minerva Symphony oil tanker, seen at the Black Sea near N=
ovorossiysk, Russia, August 12, 2021 =C2=A9 AP=20
>=20
> Russia will stop supplying countries that cap the price of its oil, the n=
ation's Central Bank head Elvira Nabiullina announced on Friday. Moscow has=
argued that a price ceiling would make oil more expensive and hurt Russian=
producers.=20
>=20
> Nabiullina said that instead of complying with a price limit, Russia woul=
d redirect its supply to countries not imposing such a limit.=20
>=20
> Her comments came a day after Russian Deputy Prime Minister Alexander Nov=
ak issued a similar warning, telling Russia=E2=80=99s Channel One that a pr=
ice cap would drive revenue lower than the cost of production, and that Rus=
sia=E2=80=99s producers =E2=80=9Csimply will not work a negative profit.=E2=
=80=9D=20
>=20
> US luring India to join anti-Russia oil cartel =E2=80=93 Reuters=20
> Read more US luring India to join anti-Russia oil cartel =E2=80=93 Reuter=
s=20
>=20
> Seen by the US as a means of lowering global oil costs while simultaneous=
ly denying Russia revenue, the possibility of a price cap was agreed by the=
leaders of the G7 nations during their summit in June. Participating count=
ries would deny shipping and insurance to Russian oil priced above a set ra=
te.=20
>=20
> The participation of only a small number of countries would have a global=
effect, as British and European companies currently insure 85-90% of seabo=
rne Russian oil cargoes, according to figures from the Brookings Institutio=
n, a US think tank.=20
>=20
> While no concrete price has yet been set, Japanese Prime Minister Fumio K=
ishida recently suggested that the upper threshold for a price cap would be=
set at around half the current market price for Russian oil.=20
>=20
> Russia has warned that attempting to artificially cap oil prices would be=
counterproductive for the West. =E2=80=9CThere will be significantly less =
oil on the market, and its price will be much higher,=E2=80=9D Security Cou=
ncil Deputy Chairman Dmitry Medvedev stated, predicting that the price cap,=
if it goes ahead, could drive the cost of a barrel of oil above $300-400.=
=20
>=20
> https://www.rt.com/business/559472-russia-stop-oil-exports/
Biden had announced the selling of 1 million barrel a day of US Strategic O=
il Reserve=20
(filled to ~721 million barrel last December) last March 30. Such release p=
robably reduces
US gasoline price at the pump does drop from its Jun high.=20
https://charts.gasbuddy.com/ch.gaschart?Country=3DUSA&Crude=3Df&Period=3D12=
&Areas=3DUSA%20Average%2C%2C&Unit=3DUS%20%24%2FG
But the oil market is still tight. Iran had increased it oil selling price =
a few days ago.
"As reported, NIOC=E2=80=99s official selling price increase affected four =
grades of Iranian oil=20
namely Light, Heavy, Soroush and Forouzan.
The NIOC had set the August OSP of Iranian Light grade for Asia at $8.9 a b=
arrel above=20
the Oman/Dubai average, up $2.80 from the previous month.
The prices for Iranian Heavy, Forouzan, and Soroush grades are also set to =
be $5.6,=20
$5.65, and $1.45 above the Oman/Dubai average, respectively.
Iran has been shipping its oil into the global markets successfully despite=
the U.S.=20
sanctions and over the past year, the export of Iranian crude oil increased=
significantly.
In late June, Head of Iran=E2=80=99s Planning and Budget Organization (PBO)=
Massoud=20
Mir-Kazemi announced that selling oil was better than before.
=E2=80=9CThe price of oil and its export has increased and selling oil has =
become better,=E2=80=9D=20
Mir-Kazemi told reporters on the sidelines of the cabinet meeting on June 2=
2.""
https://www.tehrantimes.com/news/474793/Iran-raises-August-OSP-for-Asian-bu=
yers
As is, Russia has little reason to accept imposed price cap from without.