Because of the upper price limit for Russian crude oil decided by the West, Russia has announced that it will cut oil production from March. “As previously stated, we will not sell oil to those who directly or indirectly use the price cap principle. That is why Russia will voluntarily reduce its production by 500,000 barrels a day from March,” Deputy Prime Minister Alexander Novak said, according to the Interfax news agency. A further reduction cannot be ruled out. In December, the EU, supported by the countries of the largest industrial nations (G7), set the upper limit for Russian crude oil at 60 dollars per barrel (159 litres). This means that deliveries at a higher price cannot be cleared by western insurance companies and shipping companies. As a result, Russian oil is trading at a record discount.
Price cap – Moscow throttles oil production – economy
