Despite EU and G7 sanctions, Russian crude oil deliveries have risen by as much as 50 percent this spring, the Financial Times reports, citing data from analytics firm Kpler.
According to estimates by the Kiev School of Economics, Russia’s oil trade revenues would also rise due to the rise in oil prices, the newspaper reported.
Oil sales are considered the largest source of revenue for the budget of the largest state in terms of area. “Given these changes in the way Russia ships its oil, it could be very difficult to meaningfully enforce the price ceiling in the future,” economist Ben Hilgenstock told the Financial Times. He regrets even more that more was not done to adequately enforce the price ceiling – “while we still had more influence.”
Tony Sycamore, analyst at IG Markets, suspects that the temporary fuel export ban imposed by Moscow is also behind the price increase.“Crude oil prices started the week on an upward trend as the market placed Russia’s temporary ban on diesel and gasoline exports in an already tight market,” said Tony Sycamore, analyst at IG Markets.
The price ceiling should make the war more difficult for Russia
The European Union, G7 countries and Australia introduced a price ceiling of $60 per barrel for Russian oil in December 2022. This was intended to make it more difficult for Russia to finance the war against Ukraine. Had it last week Moscow temporarily banned the export of gasoline and diesel to most countries to stabilize the domestic market.
Brent crude futures rose 48 cents to $93.75 a barrel at 1:10 a.m. EST. U.S. West Texas Intermediate crude futures rose for a second straight day, reaching $90.53 per barrel. That corresponds to an increase of 50 cents. Meanwhile, in the Northern Hemisphere, concerns are growing about low heating oil supplies during the winter.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
