Price cap of $30: Ukraine calls for a radical reduction in the price of Russian oil
23 January 23:42
Ukraine proposes to set a price ceiling for Russian oil at $30 per barrel. This will result in a collapse of Russia’s ability to finance the war. This was announced in Telegram by the head of the Office of the President of Ukraine Andriy Yermak, "Komersant Ukrainian" reports
“A strict price cap and further reduction in the price of a barrel of Russian oil is the path to global security. Our sanctions group proposes to fix the price at $30,” Yermak said.
He emphasized that Ukraine fully supports U.S. President Donald Trump in his efforts to reduce oil prices.
“Because the consequence of this will be the collapse of Russia’s ability to finance the war,” the head of the OP added.
It should be noted that today, during a speech at the World Economic Forum in Davos, US President Donald Trump called on Saudi Arabia and OPEC to reduce oil prices again. In his opinion, this will help to end Russia’s war against Ukraine faster.
“I also intend to ask Saudi Arabia and OPEC to reduce the price of oil. You have to lower it, and frankly, I’m surprised they haven’t done so… If the price were to drop, the war between Russia and Ukraine would end immediately. Now the price is high enough for this war to continue. You have to lower the price of oil,” Trump said.
The price ceiling for Russian oil was set by the EU and the Group of Seven (G7) in December 2022. Currently, the price is $60 per barrel.
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Trump’s energy policy
The US President said he would impose new tariffs in addition to sanctions threats against Russia if the country does not reach an agreement to end the war in Ukraine. He also emphasized that these duties could be applied to “other participating countries.”
In addition, he promised to impose tariffs against the European Union, impose 25 percent duties on Canada and Mexico, and said that his administration is discussing a 10 percent punitive duty on China for supplying fentanyl to the United States.
On Monday, Trump also declared an energy emergency. This should give him the authority to reduce environmental restrictions on energy infrastructure and projects, as well as ease permitting procedures for new transmission lines and pipelines.
Calvin Wong, Senior Market Analyst at OANDA, said:
“Further potential undulations in the oil market are expected in the near future due to the Trump administration’s uncertainty over trade tariff policy and the expected increase in US oil supply due to the US’ desire to become a leading oil exporter.”
According to sources citing figures from the American Petroleum Institute, U.S. oil inventories increased by 958,000 barrels last week. In addition, gasoline stocks increased by 3.23 million barrels, and distillate stocks by 1.88 million barrels.
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