Oil and Gas News from OilGasDaily.Com
OIL AND GAS
U.S. claims success with sanctions on Russian oil
U.S. claims success with sanctions on Russian oil
by Daniel J. Graeber
Washington DC (UPI) Aug 3, 2023

The cap imposed on the price that Russia can sell its oil on the market has severely limited Kremlin finances without causing a severe market shortage, a senior U.S. official said Thursday.

Western nations in December imposed a $60 price cap on Russian oil for waterborne exports. The move was designed to punish Russia for its war in Ukraine, and any nation that sells above the price cap can lose access to insurance and financial services that are essential for oil shipments in international waters.

Concessions were available for land-locked countries that had few other options but to continue receiving Russian crude oil through pipelines.

Speaking from London, Eric Van Nostrand, an acting assistant secretary for economic policy at the Treasury Department, said the price cap is working.

"This effort has frozen half of Russia's reserves, impaired the ability of its military industrial complex to field a modern army, and significantly cut into Russia's oil revenues," he said.

Speaking last month on the strength of the economy, Russian Central Bank President Elvira Nabiullina said inflationary risks have increased dramatically at the same time as the world economy is cooling off.

"This is influencing prices for Russian exports, including gas, coal, and fertilizers, that are dropping in the global market," she said. "Thus, the sanctions and the economic cycle are both affecting Russian exports."

Van Nostrand at the U.S. Treasury Department said oil revenues in particular are nearly 50% below year-ago levels, showing Western policies have struck a blow to "the Kremlin's most important cash cow."

Global crude oil prices are on the rise amid supply-side concerns. The situation was compounded on Thursday when Saudi Arabia, an ally to Russia in a group called OPEC+, opted to extend a production cut of 1 million barrels per day to September.

The price for Brent crude, the global benchmark, was trading near $85 per barrel on Thursday. Urals, the Russian benchmark, has stayed close to the $60 range and within cap levels, Van Nostrand said.

"Russian oil is trading at a significant discount to Brent oil, limiting the revenue Russia makes on each barrel it sells," he said.

Russia, however, has shown it's been able to cheat on sanctions by crude oil exports that may be sent on ships that turn off their tracking devices to avoid scrutiny. Van Nostrand, however, said that oil is sold at a steep discount and broader markets have not faced any major detrimental impacts from Western-backed sanctions.

"Since implementation, this decline in Russian revenues has persisted even as Russian crude oil export volumes remain above 2021 average levels," he said. "As a result, since the price cap went into effect, we have seen much more stability in global energy markets than the skeptics feared."

Related Links
All About Oil and Gas News at OilGasDaily.com

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
OIL AND GAS
Ecuador jungle community hopes vote will end oil drilling
Bameno, Ecuador (AFP) Aug 4, 2023
Armed with a long blowgun and darts laced with poison extracted from plants, Kominta walks naked through the thick Ecuadorian jungle, where oil exploration is threatening his way of life. "The jungle is my home, and I don't want strangers in my territory," the Waorani hunter tells AFP in the southeastern village of Bameno, in a region bordering Peru. His community of about 200 people is in Yasuni National Park, one of the most diverse biospheres in the world, and home to two of the world's last ... read more

OIL AND GAS
Missouri residents to get natural gas from landfill emissions

New process coverts CO2 into fuel more efficiently than photosynthesis

Harnessing synthetic biology to make sustainable alternatives to petroleum products

University of Illinois study finds turning food waste into bioenergy can become a profitable industry

OIL AND GAS
Waste plastics transformed into chemicals with solar-powered catalyst

Huge solar arrays installed on Psyche

Lunar Regolith to Power Moon Bases: Blue Origin Gets NASA Backing

Solar batteries: a new material makes it possible to simultaneously absorb light and store energy

OIL AND GAS
U.S. identifies three new areas for potential offshore wind energy development

Biden to visit Philly Shipyard to announce construction of offshore wind vessel

New transmission line to carry wind energy electricity from Wyoming to Nevada

Brazil faces dilemma: endangered macaw vs. wind farm

OIL AND GAS
Sweden to clear obstacles for new nuclear reactors

Ukraine nuclear plants fully operational for winter: operator

No explosives found on Zaporizhzhia nuclear plant roofs: IAEA

Niger coup raises questions about uranium dependence

OIL AND GAS
Top fundraiser offers defense of climate protests; Pope tells youths to tackle crisis

UN vows more 'transparency' of climate talks attendance

China denies obstructing G20 climate negotiations

Innovative plan combines asteroid and sunshade to tackle climate change

OIL AND GAS
New York drives towards first US congestion charge

London mayor unveils new support over road pollution charge

Uber reports surprise profit in Q2

Biden administration proposes new vehicle fuel efficiency targets

OIL AND GAS
Danish aid group attacked in Basra; Iraqis keep up Koran protests, Sweden moves embassy

Iraq expels Sweden envoy as Koran stomped in Stockholm

Iraqi PM visits Syria to bolster ties

Iraq patriarch leaves Baghdad as tensions with president soar

OIL AND GAS
Medical journals warn of 'growing' nuclear weapon threat

Pentagon confirms North Korea responded to message about Travis King

China replaces nuclear arsenal Rocket Force leadership

North Korea, China reaffirm military ties in top-level Pyongyang meeting

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.