Price cap will bite into Russian oil output in 2023
Significance Russia has lost almost all its customers in Europe, which bought 48% of its crude exports by volume last year. To compensate, it has been sending more crude to Asian markets in recent months, but this is costly, time-consuming and now complicated by the price cap. Impacts The OPEC+ coal...
| Format: | Other/Unknown Material |
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| Language: | unknown |
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Emerald
2022
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| Online Access: | http://dx.doi.org/10.1108/oxan-db274825 https://www.emerald.com/insight/content/doi/10.1108/OXAN-DB274825/full/xml https://www.emerald.com/insight/content/doi/10.1108/OXAN-DB274825/full/html |
| Summary: | Significance Russia has lost almost all its customers in Europe, which bought 48% of its crude exports by volume last year. To compensate, it has been sending more crude to Asian markets in recent months, but this is costly, time-consuming and now complicated by the price cap. Impacts The OPEC+ coalition is likely to maintain tight supply to support oil prices. Lower oil revenues will put pressure on Russia's current account and the ruble. Oil from the Sakhalin-2 project is exempted from the price cap mechanism; Sakhalin-1 could also be granted an exemption. Kazakh oil exports sharing pipeline infrastructure with Russia may face technical and bureaucratic impediments. |
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