European Union meeting hints at keeping Russian fuel prices at $60 per

Brussels/Moscow: The European Union meeting has indicated that the price of crude oil imported from Russia will be kept at $60 per barrel. European sources informed that the resolution in this regard has yet to be fully approved, but Poland has taken a reluctant stance to keep the price at a low level. However, European officials have claimed that the decision will be announced late Friday night. Last week, Russian President Vladimir Putin gave a stern warning on this issue.

After the start of the Russia-Ukraine conflict, the West imposed massive sanctions to cripple the Russian oil sector. Although it has partly affected Russia, efforts to shake up the fuel sector have yet to meet with much success. The United States and many European countries, including the United Kingdom, have stopped directly importing Russian fuel. But many of these countries are buying Russian fuel in different ways. At the same time, on the other hand, Russia has succeeded in increasing its exports to Asian countries, including India and China.

A few weeks ago, the G7, the group of the world’s most developed countries, came up with a proposal to put a price cap on Russia’s fuel. Despite opposition from several former officials and study groups in the United States and Europe, the proposal was put forward. But there still needs to be a consensus on how much to lower Russian oil prices. The failure of some of the meetings held in this regard had created an atmosphere of concern among European countries.

Against this backdrop, indications of a consensus at $60 per barrel are noteworthy. Currently, the price of crude oil in the international market is around $87 per barrel. While Russian ‘Urals’ type oil is available at the price of $67-$68 per barrel. In such a situation, some European countries claim they can shock Russia by bringing this rate down to $60. But Russia has already given a stern warning on this point.

Russian President Vladimir Putin has warned that attempts to limit Russian fuel prices will have serious consequences on the international fuel market. Putin also warned that Russia would not supply oil to countries that would implement limits on fuel prices. OPEC, the leading organization of oil-producing countries, has also expressed strong displeasure at the proposal to impose restrictions on Russian fuel prices.

Some analysts have expressed fears that Russia could drastically cut its exports to the fuel market, leading to a sharp rebound in crude oil prices.

मराठी