BRUSSELS (Sputnik)-Only the Organization of Petroleum Exporting Countries (OPEC) can affect the oil market, so a plan by seven groups (G7) that impose caps on Russian oil prices by introducing transport restrictions works. No, Samuel Furfari, a professor of energy geopolitics at the Free University of Brussels, told Sputnik.
The G7 countries held a three-day summit in Schloss Ermau, Bavarian, from Sunday to Tuesday. Apart from the member countries, five countries, South Africa, Senegal, Indonesia, India and Argentina, were invited as guests. G7 leaders announced a communiqué, saying that if Moscow does not agree to lower oil prices, countries will consider introducing new restrictions on Russia’s oil transport.
“The oil market is a global market of 100 million barrels per day, and this idea of limiting oil prices for Russian crude oil never works. Even limiting oil prices in the 1970s at the time of the first oil shock. No attempt was made, “Fulfari added, OPEC is the only” authority “that can influence the price of crude oil.
https://sputniknews.com/20220630/g7-idea-of-capping-russian-oil-price-will-not-work-for-lack-of-authority-on-market-prof-says-1096842598.html The G7’s idea of limiting Russia’s oil prices doesn’t work because of a lack of authority in the market, he says.